Bitcoin's Unique Position in the Cryptocurrency Ecosystem

Bitcoin Distinct from General Crypto

Jack Dorsey Reignites Debate: A post by Jack Dorsey on X, dated Oct. 19, 2025, stating 'bitcoin is not crypto,' has reignited discussions about Bitcoin's categorization. Dorsey maintains that Bitcoin, with its unique history and rules, should be viewed as a separate financial entity.

Monetary Policy: Fixed vs. Flexible

Bitcoin's Fixed Supply: Bitcoin’s issuance follows a predictable schedule, with block rewards halving every 210,000 blocks until it reaches a total supply of 21 million BTC. This model contrasts with other networks like Ethereum, which have flexible monetary policies.

Consensus Mechanisms: PoW vs. PoS

Security Models: Bitcoin relies on proof-of-work (PoW) for security, involving miners using energy to validate transactions. In contrast, proof-of-stake (PoS) systems like Ethereum depend on validators locking up assets to secure the network.

Governance: Stability vs. Agility

Ossify vs. Optimize: Bitcoin’s governance emphasizes slow and deliberate changes, preserving stability, whereas platforms like Ethereum prioritize agility and frequent upgrades.

Layering: Payments vs. Apps

Bitcoin's Layered Approach: Bitcoin focuses on a stable base layer with most transaction activities moving to second-layer solutions like the Lightning Network, unlike Ethereum's approach that encourages complex smart contracts on its main layer.

Market Perception: Separate Asset Class

Institutional Treatment: Institutions often treat Bitcoin differently from other cryptocurrencies, as evidenced by the approval of Bitcoin ETFs and its classification as a commodity by US regulators. This distinct treatment supports Dorsey’s view of Bitcoin as a separate category.