Bitcoin is often misunderstood within the crypto industry. Here is how:
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1/ People don’t think beyond the Bitcoin base layer. L2s in Ethereum or subnets in Avalanche bring additional features to base layers. Similarly, Bitcoin layers, like Lightning for payments or RSK/Stacks for smart contracts, bring additional functionality to Bitcoin.
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2/ Bitcoin is for settlements, not payments. The additional layers, like Lightning or Stacks, is where payments happen. On Lightning, people use sats, and on Stacks, people can use stablecoins like xUSD or Bitcoin-based assets like xBTC.
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3/ Transaction speeds are different from finality. Lightning transactions can be fast. Microblocks on Stacks can be fast. It’s the finality on Bitcoin that takes longer, as it should.
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4/ Bitcoin’s base layer optimizes for decentralization and durability. The only metric that matters for sovereign money is decentralization. The only metric that matters for a settlement layer is durability. Bitcoin maximizes both. Experiments happen at additional layers.
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5/ More environment-friendly transactions are possible on Bitcoin. The base layer maximizes decentralization and independent verification through proof-of-work. Additional layers like Lightning or Stacks don’t consume any PoW energy for transactions.
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6/ Bitcoin doesn’t change, but the additional layers can. Sovereign money should be durable and immutable (Bitcoin base layer), but you can build new features on top (additional layers like Lightning, RSK, Stacks). Bitcoin is not a rock; it’s programmable sovereign money.
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