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Bitcoin is back over $ 50,000, but its growth rate is dwarfed by other tokens, which will eventually make it redundant, says Avalanche founder | Currency News | Financial and business news

Emin Gun Sirer

  • Bitcoin is being “overshadowed” by other systems, Emin Gün Sirer, CEO of Ava Labs, told Insider.
  • The value “oozes out of Bitcoin” because it’s not really decentralized and uses so much energy, he said.
  • Bitcoin is up 440% in one year but is lagging behind Ether, which is up 986%, while Ava Lab’s avalanche is up 414%.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

Bitcoin will at some point be overtaken by other coins as their faster, cheaper networks digitize more and more of everyday life, according to Avalanche founder Emin Gün Sirer.

Sirer, the CEO of Ava Labs, who created the Avalanche network and its native Avax token, first came across crypto around 2003 when he developed a peer-to-peer digital token called Karma. This was six years before the mysterious Satoshi Nakamoto created Bitcoin.

Sirer’s creation never caught on, but his fortune in the crypto space has changed a lot since then. In September last year, with the help of some experts from Cornell University in New York, where he teaches computer science, he founded the Avalanche Network.

Since Bitcoin hit the crypto scene in early 2009, hundreds, if not thousands, of digital tokens have been created. Some are purely for speculation, others are tied to blockchains filled with decentralized financial applications, while others are used for online gaming, cross-border payments, and many other purposes.

Bitcoin is still the most widely traded cryptocurrency and has a market value of around $ 1 trillion. But it won’t stay at the top of the pile long, said Sirer.

“If you ask me what will happen to Bitcoin, it will keep growing, but the speed at which it is growing is dwarfed by these systems with a broader vision,” he said in an interview with Insider this week the edge of the Token2049 conference.

Could Bitcoin Become Obsolete? “Absolutely,” he replied to this question.

Sirer said that coins like Avax, Ether, Solana or Cardano – those that are attached to networks with multiple use cases thanks to their decentralized, peer-to-peer financing technology – could usurp Bitcoin.

He said Bitcoin would be out of date sooner than when it should run out. Satoshi Nakamoto has only made 21 million bitcoins and none can be created anymore. Bitcoin’s finite quality makes it bullish and a great store of value, Nakamoto said in the coin’s whitepaper, but that’s not enough, according to Sirer.

“There’s a bigger game out there and systems like avalanches are playing a bigger game in digitizing the world’s assets and money is just one source of value. There are many other things of value,” Sirer said.

Bitcoin’s blockchain, for example, doesn’t host smart contracts, which can make it difficult to build on, Sirer said.

Smart contracts are a central part of decentralized financing as they allow two parties to automatically transfer funds or assets without a middleman. They can run blockchains like Ethereum, Solana, Cardano and Avalanche themselves.

Digital assets such as non-fungible tokens also run in these more complex networks. NFTs – basically digital collectibles – have grown into big business this year, changing hands for millions, and garnering the endorsement of celebrities, star athletes, artists, and designers.

Bitcoin is up 440% in a year but is lagging behind Ether, which is up 986%, while Avalanche’s performance is on par with a 414% increase.

And the Bitcoin network is a lot slower than some of the newcomers. Mining Bitcoin or transferring funds takes much longer and is much more energy-intensive and requires much more computing power.

Bitcoins’ transaction time is ten minutes, while the avalanche takes two seconds, according to a recent Twitter post.

“The general ledger method is incredibly energy consuming, which means that value is leaking out of the system,” Sirer said.

“(Bitcoin) will take some time, but I expect Bitcoin to be adopted by other growing systems,” he said.

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