Will Bitcoin and the blockchain be able to handle mass adoption as a store of value without the need for other layers of solutions? Philip Salter, head of the mining division at Genesis Mining, has mixed opinions.
“I think Bitcoin is a good store of value, regardless of transaction fees,” Salter told Cointelegraph. “The problem is that the higher the commission, the higher the minimum amount that can be effectively transferred.”
Bitcoin (BTC) has stood the test of time thus far, with BTC maintaining its position as the cryptocurrency industry’s highest market value in the past 12 years. Bitcoin is seen as a more valuable store than digital money these days, and Salter believes that this shift in perception could cause difficulties:
“A few years ago, it would have been possible to save and convert one dollar efficiently because the conversion fee was nearly zero. At this point, sending a transaction could easily cost $ 15, so converting a dollar would no longer make sense. If this trend continues due to the increased use of BTC and the rise in BTC prices, regular volume transfer would not be available, and it would be an effective store of value only for very large volumes. ”
“This is why I believe Tier 2 solutions are essential not only for Bitcoin to be used as a currency, but also for the long-term potential for Bitcoin to be used as a store of value,” Salter added. Players in the industry have worked with scale-to-scale solutions such as Lightning Network to facilitate small transaction opportunities.
Salter himself uses Lightning Network solutions for his bitcoin projects. He said, “I have personally upgraded my personal phone wallet to a clean wallet (Phoenix), so that even in these difficult times I can pay with coins quickly and inexpensively.” “For anyone who has tried Lightning two years ago and found it confusing, I highly recommend you try it now because it’s more established and easy to use.”
Debate over Bitcoin scaling was the focus of discussions in 2017 and 2018. In September 2020, MicroStrategy stated that there were no major issues during one of the Bitcoin boards. The company acquired 38,250 BTC using a combination of chains and chains.