Matthew Crats from Bitcoin University delves into the potential of Kaspa (KAS) becoming the new Bitcoin in his recent YouTube video. He outlines a strategic approach to evaluating cryptocurrencies, which he believes is applicable to Kaspa and other digital currencies.
With a market cap ranking of 24th, Kaspa sits between ICP (Internet Computer) and Pepe. It operates on the GhostDAG protocol, an extension of the Nakamoto consensus.
Kaspa’s blockDAG system processes blocks concurrently within the consensus, enabling rapid block generation, immediate transactions, and scalability while maintaining security. This protocol originates from a research paper by Kaspa’s creator, Yonatan Sionski.
One of the benefits of Kaspa is its lack of pre-mining or initial token allocation, setting it apart from Ethereum and Cardano. It utilizes a proof-of-work consensus mechanism and has a set maximum supply, akin to Bitcoin.
Kaspa boasts a substantial maximum supply of 28.7 billion coins, which is significantly more than Bitcoin’s 21 million, making it seem more affordable per unit.
Concerns Regarding Kaspa
Despite its advantages, there are concerns about Kaspa. The founder, Yonatan Sionski, is known for his active Twitter presence and occasional controversial statements.
The development team’s Israeli majority raises questions about decentralization and potential bias. Additionally, Sionski’s public comments on the Israel-Palestine conflict could alienate certain users from the blockchain.
While Kaspa claims to address the blockchain trilemma (security, scalability, and decentralization), Crats offers a slightly different view. He suggests that Kaspa’s global success might risk decentralization due to the need for extensive archival nodes.
However, Crats gives Kaspa the benefit of the doubt, assuming its GhostDAG is as effective as advertised.
Kaspa vs. Bitcoin: Why KAS is Not the Next BTC
Bitcoin’s anonymous founder, Satoshi Nakamoto, provides a level of neutrality and decentralized trust that Kaspa lacks.
Unlike Bitcoin’s gradual growth, Kaspa has a faster issuance schedule with most coins expected to be mined by 2026.
Bitcoin started with curiosity leading to global distribution and adoption. Kaspa seeks to expedite this process.
The Kaspa community often states that their goal is not to compete with Bitcoin but to complement it. However, Crats argues that all currencies compete and Bitcoin’s established network and global integration make it a strong competitor.
Bitcoin has demonstrated resilience over time, having been integrated into the global financial system. Kaspa, being newer and less proven, lacks this track record.
While innovative, Kaspa faces challenges in rivaling Bitcoin’s dominance, network effects, and global reputation. Crats advises focusing on Bitcoin due to its proven resilience and established status. He recommends holding BTC and steering clear of new cryptocurrencies that claim to surpass Bitcoin.
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Source: captainaltcoin.com