No matter what else happens in the crypto world, Bitcoin (CRYPTO: BTC) will always hold the title of being first.
It was initially introduced in a 2008 whitepaper by one or more people going by the pseudonym of Satoshi Nakamoto, before being launched in January 2009.
While 13 years isn't a long time for many investment classes, Bitcoin literally dates back to the dawn of cryptocurrencies.
Now the Bitcoin price may be down 67% from 10 November's all-time high of US$68,790. But it's up a phenomenal 34,709% since trading at lows of US$66 on 5 July 2013, the year CoinMarketCap data begins tracking prices.
Yet, just because it was first, does that make all other cryptos a scam?
Image source: Getty Images
Bitcoin operates outside the system
According to Cory Klippsten, who founded Swan Bitcoin, the answer is a decided yes.
As The Age reports, Klippsten began warning about tottering the crypto markets in March.
He tweeted that Luna was "a scam" and that crypto bank Celsius Network was a "massive blowup risk".
Luna went on to hit all-time highs of $19.54 on 28 May. It's since crashed by more than 90%, currently trading for $1.96.
Celsius Network offered yields of up to 17% for crypto loans. But it was unable to meet its lofty obligations and the company filed for bankruptcy in New York in July, leaving most investors with empty pockets.
The combined collapse roiled the crypto world just as interest rates were rising and pressuring risk assets across the board. The resulting sell-off saw some US$1 trillion of value erased from the sector.
Klippsten, who prefers the term Bitcoiner to maximalist, or maxi, is among those who hold to the belief that Bitcoin will revolutionise the global financial system. But not so the countless altcoins that have come since.
According to Klippsten (quoted by The Age):
The only future for non-Bitcoin crypto is to seek to be co-opted by banks and governments and become part of the existing system. Bitcoin actually is outside of the system.
Klippsten says a lot of new altcoins are unregistered securities that show up across betting apps and speculative exchanges, functioning more like shares than money used for transactions.
Jimmy Song, a crypto podcaster and acquaintance of Klippsten, agrees.
"Bitcoin is decentralised, digitally scarce money. Everything else is centralised," Song said. "There's a world of difference between a censorship-resistant, self-sovereign money versus a gambling vehicle."
Maximalists pile in to buy the dip
When the chips are down, maximalists were eager to top up their holdings, Klippsten revealed.
He said his customers had Swan spend twice as much investing in Bitcoin in June, right after the crypto market crash, as they did in April, shortly before the market imploded.
As for his own investments, he said a percentage of his savings are automatically invested in the world's original crypto every day. Regardless of price moves.
