What are Bitcoins Competitors?
Since its beginning, Bitcoin has inspired countless copycats. Most from the crypto world, others from traditional finance and even governments. But none have managed to replicate the combination of digital scarcity, decentralization, and security that defines Bitcoin. Let’s see some of the most discussed “alternatives”.
Other Cryptocurrencies
Many cryptocurrencies claim to be better than Bitcoin - faster transactions, more anonymity, extra features. But they don’t actually compete with Bitcoin as money. Bitcoin remains superior in that role.
Every so-called improvement comes with trade-offs. Take faster transactions: this is often achieved by increasing the block size. The problem? Larger blocks make it harder and more expensive to run a full node. That leads to fewer people being able to verify the network independently, reducing decentralization.
Most altcoins were launched by companies or small teams that steer their direction. Many of them — like Ethereum — had a pre-mine, where a large share of the supply was created and kept by the founders. In Ethereum’s case, around 70% was pre-mined.
Bitcoin, by contrast, had a fair launch.
Bitcoin ETFs
Bitcoin ETFs are investment products that allow people to speculate on the price of bitcoin without holding the asset itself. They’re especially popular with traditional investors and institutions that are more comfortable with regulated markets.
But owning an ETF isn’t the same as owning bitcoin. With an ETF, you can’t move your coins, self-custody them, or interact with the Bitcoin network directly. You’re trading paper claims during market hours. Add management fees on top, and it’s clear: ETFs are a shortcut for convenience, but not a substitute for real ownership.
Gold
Gold has long been the go-to store of value. But in a digital world, it’s starting to show its limitations.
Bitcoin is easier to divide, easier to transport, and far more accessible, especially for people in countries with capital controls or unstable currencies. Gold is scarce but its supply is not limited.
Bitcoin mining, compared to Gold Mining, tends to migrate to places with abundant, stranded, or renewable energy. Bitcoin is often seen as an upgrade of Gold for the digital world.
Fiat Money
Government-issued currencies dominate today’s economy, but their value is going down constantly.
Bitcoin is different. It doesn’t rely on institutions (or shifting political winds). Its monetary policy is written into code: no more than 21 million coins will ever exist. And because it operates on a decentralized network, no single government can control it or inflate it away. Bitcoin gives people an escape route from failing currencies and it’s already being used that way in multiple countries.
CBDCs
Central banks are now scrambling to roll out their own digital currencies. These CBDCs are often pitched as modern, efficient, and inclusive. But underneath, they’re just fiat in digital form—with even greater surveillance and control.
CBDCs can be censored, frozen, or programmed to expire. They come with none of the benefits of decentralization or digital scarcity. In fact, they may represent the most powerful surveillance tools governments have ever had. It’s a dangerous regression.
Final Thoughts
- Bitcoin gives individuals full ownership—something ETFs, gold, fiat, and CBDCs can’t replicate.
- Unlike fiat or CBDCs, Bitcoin’s fixed supply protects against inflation and political manipulation.
- Gold may be reliable, but in a digital world, Bitcoin is simply better money.