George Selgin, an economics professor at University of Georgia who recently published a paper on Bitcoin’s properties, believes that Bitcoin’s design does indeed leave room for competition. “In the long run, its rigid supply is hardly likely to make it a relatively stable—let alone ideal—money, so there’s room for new rivals that can ultimately outstrip it.”
Some Bitcoin devotees worry that alternative currencies could hinder efforts to make the leading cryptocurrency mainstream, but Selgin says that competition could simply increase the odds that any one cryptocurrency succeeds.
“It could, in the long run, give rise to one or several very robust currencies,” he says. “That’s how competition works generally, with winners and losers, but with quality generally improving as the struggle goes on.” The fact that established currencies such as the dollar will exist alongside as a (relatively) safe haven should cushion very severe shocks to individuals as competing currencies duke it out, says Selgin.
via Bitcoin Isn’t the Only Cryptocurrency in Town.