In the days of spending 10,000 Bitcoins to buy two Pizzas, the purpose of cryptocurrency was to create a decentralized, global, person-to-person money transfer method.
Bitcoin’s price today is 1,000,000, compared to ancient times. strong> fold has increased. However, the Bitcoin network is slowly losing its payment method function.
Bitcoin is actually still struggling to find an identity
Many people are a revolution that replaces Bitcoin with traditional money but there are also those who are happy to buy Bitcoin and just watch the market.
In the days when pizzas bought with a few Bitcoins were cheap, the investment of $1 in Bitcoin is currently It would have been worth more than $3 million.
While we’ve seen several updates to this day, Bitcoin’s evolution seems to be geared towards a digital gold rather than a payment method.. Aiming to reduce the speed and price of balance transfers, SegWit2x was canceled for a number of different reasons.
While some of these reasons were plausible, some of them had no basis whatsoever.. At the end of the day, we come to one conclusion: No one is in a hurry to increase the capacity of Bitcoin.
No Problems on the Road to Digital Gold
Most people who support SegWit2x will soon had his back turned. There are many reasons for this, especially the disagreement of the user community.. In addition, the attempt to introduce SegWit2x just a few months after the SegWit update is another important reason.
There are also important issues that are affected by the fact that users and Bitcoin developers do not attach much importance to scalability.. The cancellation of this hardfork has dramatically changed the way people view Bitcoin.. Bitcoin has turned into an entirely new ‘asset‘ that is currently exciting investors.
Prepaid contracts for this cryptocurrency and support from Wall Street investors make Bitcoin an investment. glorified as an intermediary. However, the issue of using it as a payment method in retail markets has become much more lifeless.
Roger Wu, one of the founders of the digital market organ Cooperatize.com, addressed the issue as follows.
“The most important question is, are people willing to work with Bitcoin? To tell the truth, many of our users and other businesses do not use Bitcoin.”
This is a double-edged sword.. If people don’t want to spend their Bitcoins, then sellers won’t be introducing Bitcoin-powered payment systems either.. And that won’t give users a reason to spend their digital gold…
David Yermack, who researches Bitcoin in the business department of New York University, said, “If people don’t find a reason to hold Bitcoin, it will be Bitcoin”. The prevalence of Bitcoin will also decrease.”
“The scalability issues in the foundations of blockchain prevent many cryptocurrencies from being used as one currency. A single money transfer can sometimes take 10minutes, sometimes 1 hour to be approved.”
With all this in mind, those who profit by using Bitcoin as digital gold think that an already working protocol will suffer with a future update.
Both Goals Have a Future
Bitcoin surpasses its payment method target as it moves towards becoming digital gold. So why is it still referred to as “the future of money“? In fact, there are still some methods for Bitcoin to be a money payment method.
Although Bitcoin was described as a payment method in its introduction years ago, it now serves a completely different function.. However, when Bitcoin becomes a solid, reliable and trouble-free investment tool, it makes much more sense to develop a payment method based on it.
One of the most popular solutions in the formation of this payment method is a Lightning Network update, namely A network “lightning”. If this update is integrated into the Bitcoin blockchain, interpersonal money transfers will become incredibly faster.
One Direction to Choose
If Bitcoin continues to move towards digital gold as it is now then it is ready to be used as a payment system.. Going in the opposite direction could have dire consequences.. There are already some altcoins trying to become a payment method, such as Bitcoin Cash.
Stable liquidity is the basis of a payment system.. This stability is close to impossible to achieve as a result of establishing a direct payment system instead of establishing a well-established asset.. More liquidity means a more stable and mature market. We can even say that the price volatility decreases as more money flows into the Bitcoin market.
Join our Telegram channel to be informed about all developments and posts!