Explore the benefits of collaboration
Bitcoin, the first and most famous cryptocurrency, was created with the goal of becoming a decentralized, peer-to-peer electronic cash system.
While Bitcoin has made progress toward this goal, it still has a long way to go in terms of widespread use and acceptance as a currency.
Bitcoin’s Intended Purposes and Shortcomings
Bitcoin (BTC) was originally created to act as a decentralized peer-to-peer electronic cash system that would allow secure, fast and affordable transactions without intermediaries such as banks or other financial institutions.
Despite some early adoption and acceptance by merchants, BTC has yet to achieve widespread use as a currency. Many people still see BTC as a speculative investment rather than a medium of exchange, and its price volatility makes it difficult to use for day-to-day transactions.
Bitcoin maximalists argue that it is a store of value and a hedge against inflation, but its volatility leads to wild price swings, making it unreliable as a store of value.
BTC is down over 70% from its all-time high of $69,000 in November 2021. This kind of fall does not inspire confidence that it can be a store of value or a hedge against inflation.
Is It Time For Bitcoin To Do More? Can Bitcoin evolve into something bigger than an electronic cash system that lacks adoption?
The answer may be in cooperation rather than maximalism.
Benefits of Integrating Bitcoin with Other Blockchain Technologies
By collaborating with each other, different players in the cryptocurrency industry can share knowledge and resources, leading to greater innovation and a more robust ecosystem. Integrating BTC with other blockchain technologies can allow Bitcoin to take advantage of the features and capabilities of other cryptocurrencies, leading to a more versatile and usable currency.
For example, the Lightning Network is a layer-two scaling solution that enables faster, cheaper, and more private transactions. In addition, integrating Bitcoin with Ethereum’s smart contract capabilities could allow for even more sophisticated applications and use cases.
Another example of integration is what the folks at Stacks are building on top of Bitcoin.
Stacks
Muneeb Ali, the founder of Stacks, sees BTC as a building block for a decentralized internet, offering greater privacy, security and control to users. Stacks allow developers to build decentralized apps on top of the Bitcoin blockchain using PoX to inherit the network’s security and stability.
Essentially, PoX works by allowing users to unlock BTC in exchange for a native Stacks token (STX). By doing so, users can participate in Stack’s blockchain and earn rewards to help secure the network.
This approach not only improves the security and decentralization of the Stacks network. But also helps align the incentives of BTC holders with the success of the Stacks ecosystem.
The stacks approach seems to make sense. Why not unleash the full potential of the most dominant cryptocurrency in the world?
Others disagree, and we spoke to some who believe that Bitcoin is fine just the way it is.
Carl Runefelt: “I don’t think Bitcoin needs to improve”
“I bought all my watches and all my cars with crypto.” This is a quote from Carl Runefelt, a former Swedish treasurer turned BTC maximalist. Runefelt believes that BTC is already a fully realized blockchain that does not require any improvement.
Mr. Runefelt, who goes by “The Moon,” has found the best use case for Bitcoin, apparently getting in early, then cashing out to buy custom watches and fast cars.
When asked about the lack of utility with BTC, he first attacked the premise of the question and then proceeded to not answer it.
“This question is clearly wrong. Bitcoin has multiple tools. Bitcoin is the best form of money in human history. It is the most secure form of storing wealth, it is the best way to move value across borders and over the internet. »
So I think the functions and tools of BTC are huge and extremely important for the freedom of money and freedom in general.
A value store?
When asked how BTC can be considered a store of value when it is highly volatile, Runefelt replied.
“Obviously that’s the nature of the market – but I think the most important thing is to invest in yourself and go full-time crypto, that’s why I have all my business, this is in crypto.”
This is an interesting view, but perhaps someone who has gone “full-time crypto” will disagree. For example, a small business owner who invested $10,000 in bitcoin in November 2021 would be down over 70% year to date on that investment. It is difficult to buy watches and cars with such losses.
Along with pumping up his lavish lifestyle in Dubai on social media, “The Moon” also runs a crypto job desk. Which he promoted almost as much as his maximalist views on bitcoin.
We tried to pin Mr. Runefelt on bitcoin’s volatility, and he balked at the argument that bitcoin is “new.”
It has actually been around for 14 years and still hasn’t fulfilled its original purpose.
Nevertheless, Runefelt continued:
“So honestly, I don’t think Bitcoin needs to prove itself anymore because Bitcoin has been around for 14 years and every single day that Bitcoin survives is another proof that Bitcoin is here to stay and increases the chance of success for the next 100 years. “
Give it time
Runefelt expressed a fatalistic view that since BTC is “new”, time must be given to get rid of the volatility.
“It’s just an inevitability when you have a new asset class that’s trying to figure out the price, the discovery, the supply and the demand, having to decide what the value of a Bitcoin is going to be, is it going to be $10 to $10 million $1 million?”
Nobody knows what the price will be 20 years from now, and that’s why the volatility is there.”
Yes, Bitcoin has “survived”, but has done so as a speculative asset – not as a store of value.
The last point from Runefelt seems to directly contradict his earlier advice to others. Encouraging people follow his lead and go “full-time crypto”.
Here we see that “The Moon” has entered a new phase – about his previous statement that Bitcoin was fine as it is.
“Bitcoin doesn’t need to change as a store of value, it’s already the best thing we’ve ever seen in human history. I think when the world changes, Bitcoin can change with it, you can upgrade. Bitcoin can adapt. It may have other layers on top of Bitcoin, so BTC will change over time, but the fundamentals of Bitcoin will never change.”
Maximalists believe Bitcoin does not need improvement. But others in the crypto community see the potential for collaboration.
Collaboration between crypto communities and companies
Collaboration between different crypto communities and companies can lead to a more cohesive and efficient ecosystem. For example, the Enterprise Ethereum Alliance works together to develop and implement blockchain-based solutions.
This type of collaboration could lead to greater standardization. As well as interoperability between different blockchain systems, which leads to increased efficiency and adoption.
Efficient, secure, scalable
A more collaborative and integrated approach to Bitcoin can build a more efficient, secure and scalable ecosystem. By working together, different actors in the industry can share resources and expertise, which leads to greater innovation and standardization.
Also, integration of different blockchain systems can lead to increased usage. And mainstream acceptance, as well as increased security through greater diversity and redundancy.
Bitcoin’s future
Bitcoin’s original purpose was to create a decentralized peer-to-peer electronic cash system. But it has yet to achieve widespread adoption as a currency. Integrating BTC with other blockchain technologies, and moving away from maximalism, can unlock the full potential of Bitcoin. By working together, the industry can develop a more efficient, secure and scalable ecosystem that benefits everyone.
Disclaimer
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