Would Bitcoin & its blockchain be ready to handle mainstream adoption as a store usefulness without requiring second-layer solutions? Genesis Mining’s head of mining operations, Philip Salter, holds a mixed view.
“I think Bitcoin may be a good store usefulness no matter transaction fees,” Salter added.” “The issue is – the more the fees are, the larger is also the minimum value that will be efficiently transferred.”
Bitcoin [BTC] has stood the test of time up to the present point, with BTC maintaining its place as the crypto industry’s highest market capitalisation asset for the past 12 years. Bitcoin is seen as more of a store useful than digital cash lately, however, and Salter thinks complications should arise from this shift in perceptions:
“Some years ago it had been possible to store and transmit $1 USD efficiently, since tx fees were effectively zero. Presently, sending a transaction can easily cost $15 USD, so it’s not sensible to transmit $1 USD any longer. If this trend continues due to more use of BTC and better BTC prices, it’ll become prohibitive to transfer value in common amounts and it’ll be only an efficient store usefulness for very large amounts.”
“That’s why i feel that 2nd Layer solutions are a necessity not just for the utilization of BTC as a currency but also for the future feasibility of BTC as a store usefulness ,” Salter added. Industry players have worked on layer-two scaling solutions, like Lightning Network, in an attempt to facilitate small transaction capabilities.
Salter himself uses Lightning Network solutions for his own Bitcoin endeavors. “I personally upgraded my personal phone wallet to a lightning-only wallet [Phoenix], in order that I can even in these crazy times pay with coins quickly and cheaply,” he added. “To anyone who tried to use lightning two years ago and located it confusing, I strongly suggest that you simply give it an another try now that it is skilled and user friendly to use.”
Bitcoin’s scaling debate was a focus discussion earlier in 2017 and 2018. Also in September 2020, MicroStrategy added that it faced no major issues during one among its BTC accumulations. The firm bought 38,250 BTC employing a combination of off-chain and on-chain avenues.