I'm more interested in the utility side of crypto. That's why long term, I'm looking more at the functions of crypto, rather than look at it from a short term speculative side.
To me crypto is still a developing technology.
I don't see it as a solid investment yet. But I do see it as an increasingly solid utility.
It still has its share of issues and needs more development.
And Bitcoin is no exception.
The issues.
While Bitcoin has many of its core elements proven to be solid after so many years, and has gone through so many trials by fire, it doesn't mean it's perfect.
It's energy consuming with proof of work. Although, miners have become increasingly energy efficient, and now nearly half of the energy is coming from renewable energy.
There are issues of scalability. You still have to wait several minutes to get enough confirmations. Fees right now are around $1.80 per transactions.
It has partially solved that with lightning network being able to confirm transactions within seconds, and for the costs of around $0.04.
Which is fine if you are buying a coffee. But it comes at the cost of losing the important decentralization part.
And there is a limit in the utility of Bitcoin. It doesn't have some of the technology of other newer chains, like smart contract.
The benefits.
It still comes with a lot of benefits. All the benefits of decentralization, democratization of money, giving you more freedom and control, not having banks, self banking, the security benefits, removing the incentive and most of the ability of third party corruption, and all the perks of a currency without borders, etc…
Is Bitcoin the final answer to crypto?
So while there are a lot of powerful elements, there is still a lot of room for improvement.
This is why we had Ethereum enter with gen 2 solutions. And why we now have gen 3 chains going a step further.
Gen 3 are really aiming for tackling the trilemma. And going for near $0 transaction fees, instantaneous confirmation, finality in seconds, and TPS aiming for the hundred thousands even the million. And we've seen chains beginning to deliver on these. For some, it's just a matter of time before they are decentralized enough.
So I don't think Bitcoin is the final or only answer to crypto.
On top of that, I think there won't be one crypto to rule them all nor be a jack of all trades. There will be many crypto with their own specialty. And Bitcoin will have its place for its own specialty.
Conclusion:
It's my personal belief that while Bitcoin will likely remain at top 25 coin for many decades, and is still solid for some very specific function, like being the gold of Bitcoin, I don't think it will be the final answer for crypto.
Crypto is still in the development phase. But it has now shown a lot of proven working concepts and utility. So we are likely in the later stage of development.
That's why I also think that a lot of the coins and blockchain you see now, won't all vanish in the next bear market, like in past bear markets. But the top 25 landscape might be a little different, with more improvement on the way, and I don't think Bitcoin will be #1 for too many more cycles.
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