Technically, Bitcoin was not the first cryptocurrency. However, there can be no doubt about the fact that it is the one responsible for popularizing the concept. For proof, look no further than the fact that there are now more than 1,500 Bitcoin ATMs that can be found in various places in various countries, which suggests that the cryptocurrency is becoming more and more accepted.
With that said, since Bitcoin is the cryptocurrency responsible for popularizing cryptocurrencies, its creation precedes most of the research that has been conducted regarding them. As a result, while it remains the single most popular cryptocurrency that can be found out there, it possesses a number of potential issues that have become apparent with the benefit of hindsight. Unfortunately, the decentralized nature of Bitcoin can be as much help as hindrance in this regard, seeing as how it makes it that much more difficult if not necessarily impossible for interested parties to come up with potential solutions and then implement them. As a result, while no cryptocurrency has managed to unseat Bitcoin so far, it is not impossible to imagine a newcomer such as the Chia Network accomplishing something along those lines because of these potential issues.
For those who are curious, the Chia Network is a new project that is planning to launch a new cryptocurrency. Said cryptocurrency is not meant to be a competitor that will co-exist with Bitcoin. Instead, it will have the much more ambitious goal of becoming a replacement for Bitcoin. In fact, it is intended to be a better version of Bitcoin, which will have incorporated lessons learned from the continuing operations of its predecessors.
Can the Chia Network Succeed?
Of course, there is no real way to tell whether the Chia Network can succeed when it comes to its intended goal of replacing Bitcoin. However, there are some reasons to believe that it has a fighting chance.
For example, there is a fair amount of expertise and experience behind the new project. After all, the head of the project is Bram Cohen, who happens to be the person responsible for the BitTorrent protocol that is used to enable P2P file sharing. Furthermore, Ryan Singer is involved as well, which is important because he was COO of a Bitcoin exchange called Tradehill. As a result, it is no exaggeration to say that the people behind the Chia Network seem like they have the right competencies.
Likewise, it should be mentioned that the Chia Network is promising to solve a number of problems without impacting the performance of the resulting cryptocurrency in a negative manner. For example, it is planning to use proofs of space as well as proofs of time to conduct transactions as opposed to Bitcoin’s proofs of work, which should provide outstanding security without the need to use up as much electricity. In part, this is beneficial because it will reduce the environmental impact of the cryptocurrency, which should come as welcome news to those who are concerned about the environment. However, it should also be noted that it promises to make the functions of Bitcoin fairer as well because as it stands, it favors people who have access to cooler air as well as lower-cost electricity. Something that contradicts the ideals on which the cryptocurrency was founded.
Regardless, while the Chia Network has not released much information about how much funding it has managed to secure, it has managed to secure enough from interested parties that it is moving ahead with its plans to launch by the end of 2018. It remains to be seen whether this will come true or not, but in either case, Bitcoin investors should keep a watchful eye out as a just in case precaution.
Should This Concern BitCoin Investors?
After all, even if the Chia Network fails to dislodge Bitcoin from its current position at the top, it will have an unavoidable impact on the prospects of its predecessor should it prove to be popular. As a result, Bitcoin investors should pay attention to what is happening in the world of cryptocurrencies so that they can take action to protect the portion of their wealth locked up in the form of Bitcoins should that prove necessary. Otherwise, if the value of Bitcoins fall because of rising competition, they could end up suffering serious losses depending on how much they have invested in that particular cryptocurrency. Simply put, the markets are never still, which is why investors need to always pay attention to what is going on so that they can take the appropriate actions sooner rather than later.