One day 10,000 Bitcoins were used to purchase two pizza, But today, the price has increased nearly a million-fold, but the network is no longer quite as functional as it was back in those days.
Bitcoin still struggles with its identity, as many would like it to transform the money, but they are actually happy sitting on the crowd of it and watching it appreciate in value faster than may be any other asset in history.
If we had invested a single dollar in Bitcoin on the original Bitcoin pizza day, that would be worth over $3 million today.
As the Bitcoin is upgrading day to day along the way, it seems like Bitcoin is becoming less of a payment network and more evolving into the digital gold. The failure of SegWit2x, which has set its goal to decrease the transaction costs and improve confirmation speed, failed for few number of reasons.
Some of them were good, and some were not that great. But at the end of the day, one thing got cleared: there is no rush to increase the Bitcoin’s capacity.
No issues with the digital gold
Those who supported 2x have slowly turned back on the fork. They’ve quoted all sorts of the reasons, primarily the lack of agreement in the community. Of course, it was clear, that would be difficult launch a hard fork just a few months after implementing the SegWit soft fork.
But the failure of the community and the Bitcoin development team is to describe the sense of urgency at fixing the scalability issue has lasting effects. In fact, it has seriously skewed the way people now view Bitcoin.
Because of developer’s enthusiasm when it comes to speeding transactions and lowering fees, the Bitcoin network has become much less useful as a payment network. The currency has now effectively become an entirely new type of the asset for the investors.
Progress has been made in advancing its investability with the announcement of futures, and the backing of a number of Wall Street investors, but when it has come to its retail adoption and better as a payment method thing, it has been slow.
Co-Founder of Cooperatize.com Roger Wu Answered the following question:
Question: “The biggest thing is are people willing to pay for Bitcoin?”
Answer: “The reality is that most of our customers are other businesses and other businesses don’t use Bitcoin.”
David Yermack, Professor at New York University Stern School of Business and who studies bitcoin says:
“It’s quite possible that after a while you just realize it’s not worth the cost of tooling up to take it and you decide to drop it if the publicity has run its course,”
Morgan Stanley analysts wrote:
“The Blockchain underpinnings of most cryptocurrencies scale too poorly for most currency-like uses,” “Time to clear single transactions can often be from 10 minutes to more than an hour.”
Thus, Bitcoin Digital Gold is pretty good because it is making huge profits from its investment, and condemns some controversial rule changes on the protocol.
Still, there are Opportunities
So, if Bitcoin has taken moves constantly towards being digital gold while leaving also, its payment system roots behind, There are still chances for digital gold to work as a payment method though.
It is good that Bitcoin is settling into its core function, even if that function if different to what the white paper prescribed years ago. If Bitcoin becomes a solid, trustless and dependable store of wealth, then its payment network can be built on top of that base.
Pick a direction
Here you are creating a digital asset first that can be used as a payment network later. The reverse would have dire consequences, and it is the likes of Bitcoin Cash and other altcoins who are trying to be payment-first.
A payment system needs stability, and that stability cannot be reached if you aim to be a payment network before you are an established asset. Running more can only help settle down things like cryptocurrencies, as even the dryness of Bitcoin has eased as more money has entered the market.