Scaling solutions promise exponential growth for Bitcoin and ensure that current volatility is only a rash in the future.
I know people who see the price of Bitcoin and think, “Damn it, I missed it. I’m late. “Because of this, they are drawn to the cheaper coins, the altcoins, which will have no value in the long run. They think that the coins that trade for less than a dollar somehow move on to the” next one The problem here is that there is no “next bitcoin.” Bitcoin was and is a historical accident, much like our ancestors’ discovery of fire. Let’s discuss the early Internet for context.
In the early 1990s, few people had access to things like email and forums. Back then, the internet was a curiosity. Not many people knew where it was going. Social networks, social media, the iPhone, online conferences and the shift to online business could hardly be imagined, especially Amazon, which was founded as a bookstore in 1994. I think there we are with Bitcoin. We’re still very, very early. Mainly because so many people are not aware of all of the developments that are taking place and what is being built on Bitcoin as we speak.
One project that is being built on the Bitcoin blockchain is a so-called Layer 2 solution – the Lightning Network, which now has 14,000 nodes and 68,300 payment channels on all six continents (sorry, Antarctica). And then there are Layer 3 solutions, the decentralized apps that build on the Lightning Network. The aim is to create a new peer-to-peer Internet. One that is not under the control and censorship of Big Tech. In this way, it realizes the original ethos of the internet.
Using the infrastructure built by companies like Impervious, let’s take a first look at projects that allow people to call Lightning nodes and monetize any non-bank account service with Lightning.
We are living in the early stages of evolution. We don’t know where we’re going yet. Bitcoin’s Layer 1, the settlement layer, has proven to be the best store of value as nation states adopt it as legal tender and give up the global hegemony of the US dollar. The Lightning Network has proven to be the best medium of exchange. And now we have the advent of Layer 3, decentralized apps. This is where the companies of the future are built. This makes Bitcoin seem all the scarcer for the functionality it offers.
In terms of adoption, Bitcoin has roughly the same number of users as the Internet in 1997. However, Bitcoin is growing faster. If this continues, we could very well have over a billion users in the next four years.
Bitcoin Adoption Rate Over Time: Source
The daily price movement of a single bitcoin is just noise. It doesn’t matter what price you buy. You don’t have to take my word for it. There are individuals and groups who are smarter and wealthier than me who see current prices as a slip. With the “Stock-to-Flow” model from PlanB, we are steadily on the way to USD 1,000,000 per coin. Worrying about where we are trading is like worrying about the stock price of Amazon or Apple in the late 2000s. We’re just getting started. The Lightning Network is still going strong.
These are very exciting times. I am privileged to have seen the dawn of the modern Internet and its development to this day. With Bitcoin, it’s not too late, we still have the opportunity to participate in its development.
This is a guest post by Paul Opoku. The opinions expressed are solely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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