Numerous versions of Bitcoin have been created throughout the years. Rather than choosing completely new names for these currencies, there are different Bitcoin-themed clones on the market. According to Weiss Cryptocurrency Ratings, all of these clones have one common aspect. They are all flawed in different ways, albeit Bitcoin itself is not perfect either.
The Bitcoin Clones Arrive on the Scene
Multiple iterations of Bitcoin exist as their own separate cryptocurrencies right now. We have Bitcoin Cash, Bitcoin Gold, Bitcoin Private, Bitcoin Diamond, and several others. While all of these coins are based on Bitcoin, they also inherit some of the native flaws found in this cryptocurrency. Bitcoin, while a first mover, struggles with upgrades, slow transactions, and rather high fees at peak times.
For all of those flaws, the original Bitcoin also offers some advantages. It has a global recognition no other cryptocurrency can offer right now. This is why so many “forks” of Bitcoin have been created in the past few months. It seems all of these projects want to ride the coattails of Bitcoin’s success in the hopes of gaining traction. Capitalizing on the popularity of an existing project is not new in the cryptocurrency world.
All of these clones share some inherent flaws according to Weiss. While they aim to solve some of Bitcoin’s inefficiencies, claiming to be superior will not make it so automatically. Improving upon a fundamentally flawed concept is a valid model. However, these clones also seem eager to embrace the weaknesses found in Bitcoin, which makes them less efficient than they could be otherwise.
Is There a Future for the Forks?
Bitcoin Cash is an interesting exception in this list. It has a scaling solution in place and a faster transactions time. BCH also boasts lower transaction fees compared to Bitcoin. Even so, the currency still remains deflationary, which many financial experts consider being a problem. Based on more traditional financial models, deflationary currencies usually tend to fail in the long run.
Weiss Cryptocurrency Ratings also points out some other flaws found within these Bitcoin clones. Protocol upgrades remain a bit tricky, and the fee structure still puts miners in control of the network. That in itself is still a worrisome statistic. Combining this information with how none of the Bitcoin clones comes even close to Bitcoin’s popularity and acceptance makes for a rather interesting situation.
Whether or not there is a future of the Bitcoin clones, remains a bit unclear. Bitcoin will not go away despite some of its inherent flaws. There is more to cryptocurrency than just BTC, but Weiss is convinced none of the clones offer something to really set them apart. Coins direly need adoption and solid technology. Finding those currencies to invest in can be rather challenging.