Finshots Daily Finshots Cracks Crypto EP.4: Crypto’s big shift - DeFi, altcoins, and the changing economy
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Feb 7, 2025 Explore the critical role of Bitcoin in the evolving cryptocurrency world. The discussion highlights the contrasts between 'dumb' and 'smart networks' and how simplicity can drive innovation. Delve into Bitcoin’s foundations and the emergence of altcoins in decentralized finance, along with the risks they bring. Finally, unravel the dynamic between Bitcoin and altcoins, underlining Bitcoin's enduring value despite the growing competition in the crypto landscape.
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Bitcoin's Dumb Network Advantage
- Bitcoin wins because it's a "dumb network."
- Dumb networks allow innovation at the edges, unlike smart networks like banking apps.
Usenet and Email: Dumb vs. Smart Networks
- Usenet, an early digital communication form, illustrates how dumb networks win.
- Email transformed communication, despite skepticism about the internet handling complex applications.
Bitcoin's Open Network
- Bitcoin's open nature allows for continuous innovation and scaling adoption.
- Despite being the oldest, Bitcoin remains number one due to this characteristic.