Glenn Hutchins Compares Bitcoin to VHS Betamax
Bitcoin may see itself being pushed out of the major cryptocurrency group and outperformed into redundancy. The first cryptocurrency has been compared to the Betamax and how it lost out to its emerging rival, VHS.
Speaking to CNBC on the investment show ‘Squawk Box', the North Island Chairman, Glenn Hutchins pointed out that bitcoin, while taking up that largest percentage of the cryptocurrency market, is in danger of being outpaced by smaller, more innovative challenger cryptos.
‘Bitcoin could turn out to be Betamax'
‘Bitcoin could turn out to be Betamax', referring to the product released by Sony in 1975. Which battled against JVC's VHS platform for control of the video recording market. VHS would be victorious as the Betamax would be shelved in 2015.
Hutchins believes, in his experience, that while the cryptocurrency market is awash with numerous major cryptocurrencies and altcoins, one may ultimately prevail. With Bitcoin in danger of being placated and beaten to market dominance by a rival like XRP or Litecoin.
“The token of exchange at the heart of the math solution that leads the technology will be there… Different tokens will be used for different applications.”
Rival cryptocurrencies and altcoins like XRP and Litecoin allow for faster transaction speeds for international purchases. With Litecoin capable of sending payments in 2.5 minutes versus Bitcoins 10, while both Bitcoin Cash and Ripple outpacing both.
Currently, bitcoin makes up 36% of the overall global market share compared to its rivals. But is fast being regarded as an enabler for, not the dominant cryptocurrency on the market.
“I think it's more like copper, like an industrial metal that's used for a purpose to drive an outcome… There will be a token that's used just like there's an industrial metal that's used for wiring.”
What's your take on tech investor and NBA team owner thoughts? Why does it seem like every one in the tech space who is on the outside looking in loves blockchain and hates bitcoin? Most of those on the inside know that while blockchain can exist without bitcoin, bitcoin is what gives blockchain its most important use case and meaning to date.