For a long time, many people have confused Bitcoin with thousands of other 'cryptocurrencies', thinking they are just interchangeable digital assets for different applications. In fact, this understanding is far from the truth. Bitcoin is not a member of the cryptocurrency market; it is more like a completely different financial species.

The biggest misconception: Bitcoin ≠ cryptocurrency

The term 'cryptocurrency' often lumps all digital assets together—Bitcoin, Ethereum, Dogecoin... seemingly the same. But if we compare the existing financial system to a leaking ship, most crypto projects are just selling you better buckets or decorations, while Bitcoin is building a brand new, leak-proof ship.

The vast majority of crypto projects are essentially company operations: there are CEOs, boards, foundations, and centralized decision-making mechanisms. For example, Ethereum is led by a foundation and core development team, transitioning from proof of work to proof of stake, not because of global user voting, but because a few people make the decisions. Similar examples include Cardano, Solana, etc., which are not fundamentally different from traditional companies—they just replace stocks with tokens.

This structure means that holding these tokens is like holding shares in a company that has no legal obligation to serve you. The founding team can change direction or even abandon the project at any time, with no guarantees for investors' interests.

True decentralization is seldom achieved

Many projects loudly claim to be 'decentralized', but more often they just distribute database backups across multiple machines. This is fundamentally different from true decentralization.

True decentralization means: anyone can freely join the network without approval or barriers. Bitcoin is like this—anyone can participate in network security maintenance with a cheap device, unrestricted by any organization, individual, or government. In networks like Ethereum, becoming a validator often requires a financial threshold of tens of thousands of dollars, making participants primarily institutions and the wealthy.

The unique design of Bitcoin

Bitcoin is not a business, but a monetary revolution attempting to solve an unresolved problem for thousands of years—creating a currency that cannot be manipulated by governments or banks.

Its characteristics include:

  • Supply cap: fixed at 21 million, cannot be artificially inflated.

  • Open participation: Anyone globally can use and store Bitcoin without barriers.

  • No one controls it: no CEO, no headquarters, no board of directors, the founders have long disappeared, and the system operates on consensus.

  • Physical security: The proof of work mechanism makes the cost of attack unrealistically high, ensuring network security.

The truth about energy consumption controversies

Bitcoin's energy consumption is often criticized, but this energy is a guarantee of network security and immutability. Every transaction is recorded in the blockchain history, which cannot be revoked or modified, an unprecedented feature in the digital world. In contrast, banks can freeze accounts, and a few nodes in some crypto projects can even collaborate to change records.

Why 'slow' is actually an advantage

Bitcoin processes about 7 transactions per second, which seems to be less than the thousands of TPS on other chains, but its base layer is like a bank vault—emphasizing security and permanence rather than speed. Daily payments can be made instantly through layer two solutions like the Lightning Network, maintaining security while ensuring convenience.

The watershed moment in regulatory attitudes

Governments around the world have vastly different attitudes toward Bitcoin and other tokens. Most crypto projects can be investigated, shut down, or have executives summoned like businesses; Bitcoin, however, has no entity to regulate, resembling an internet protocol, and is viewed as 'digital gold' or a commodity. Some countries have even directly adopted it as legal tender.

The core problem Bitcoin aims to solve

It is not about creating a flashier payment tool, but fundamentally challenging the fiat currency system:

  • Prevent inflation caused by unlimited currency issuance

  • Prevent arbitrary freezing of accounts by banks

  • Break the exclusion of certain groups by the financial system

Historically, gold and silver have served as value storage tools, but they have flaws in divisibility, transportability, and security. Bitcoin combines scarcity with digital advantages.

Why Bitcoin continues to win

Although new tokens are emerging endlessly, Bitcoin remains the largest by market cap, with the most users and the highest security. Its network effect and trust basis continue to strengthen, just as gold historically dominated the currency landscape.

When institutions, governments, or corporations need to store wealth long-term, Bitcoin is often the first choice. Other tokens are more for speculation rather than long-term value storage.

Conclusion: Make informed choices

Understanding the difference between Bitcoin and 'cryptocurrency' is a key watershed in financial strategy. Chasing short-term fads may bring excitement, but Bitcoin represents a profound transformation of the monetary system. It is not a fleeting tech trend, but a cornerstone that could change the global financial landscape.

In the vast ocean of digital currencies, Bitcoin is a brand new ship—it does not rely on patches from old ships, but redefines the way of sailing.