Creativity Or Spam?
The recent spike in BTC transaction fees has left many a Bitcoin maxi rather unimpressed. Many argue that what is currently taking place in regard to Ordinals and BRC-20 tokens is nothing but spam, and unnecessarily clogging up the network. I would go as far as to say that in this particular instance, I agree. However, only to a certain degree. Personally, I like the idea of non-fungibility on the BTC network.
However, I have to agree that much of what is currently taking place is more “spammy” in nature than anything else. Crypto enthusiasts however need to be careful of carelessly throwing out the baby with the bath water. Look, even NFTs on Ethereum and Solana are a far cry from where I envision the sector to be. However, as with most things, it’s a journey of maturation and discovery.
An initial surge in interest and “creativity” is to be expected. This is how these events unfold, it’s nothing new. Despite the surge in fees, there is a silver lining to this cloud and one that I have been waiting some time for! Congestion on the Bitcoin chain opens up the way for layer 2 solutions, and in particular, the Lightning Network.
Lightning Is Bitcoin As Cash
Obviously, transaction fees on the native chain have always been high, especially for micropayments. However, Lightning changes the rules and enables payments at a ridiculously low cost to the consumer. What we have yet to see is the support from major exchanges. Despite decentralization being king, CEXs still have relevance in terms of “value transition”. However, the recent announcement from Binance is likely to open up the floodgates.
Binance has announced plans to add Bitcoin Lightning Network withdrawals for users. This is likely to trigger a domino effect with additional CEXs following suit. Earnings in other Cryptocurrencies can now be received and spent on the Lightning Network. This is something that would personally interest me, and I’m sure will aid in the adoption of Lightning as a payments network.
If Bitcoin is a store of value, as well as a savings mechanism, it makes sense that at some point savers will become spenders. There is a need for Bitcoin as cash, even though for many, it is still an unrealized utility. I believe Bitcoin will operate as cash in a more significant way within the next five years. Countries like Lebanon, Argentina, and Turkey are already living within this reality.
First World countries have been spoilt, but not for much longer. A significant shift to Bitcoin and other Cryptocurrencies is simply a matter of time… and nothing else. People operating within a Bitcoin/Crypto standard will be looking to transact speedily, inexpensively, and with the least amount of volatility. Bitcoin Cash no longer has any real future as digital cash. Perhaps, other advancements may occur on Smart Chain.
This was something that I envisioned some time ago. The BCH community was getting rather excited about the low transaction fees on BCH, as well as its future as digital cash. For the most part, I just kept silent. It was evident that once lightning was a working product, it would steal the show. A superior store of value, as well as a more decentralized network… why would you require anything else?
Final Thoughts
Regardless of what becomes of Ordinals and BRC-20 tokens, I am just pleased that Lightning is gaining a foot in the door, especially when it comes to CEXs. Spending Lightning sats is extremely fast, and significantly cheaper than most chains. It’s a great user experience… and that counts when you are looking to utilize a Cryptocurrency as cash. It will be interesting to see how this unfolds. All the best, catch you next time!
Disclaimer
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This article was first published on Sapphire Crypto.