I know people who look at the price of bitcoin and think to themselves, “Damn, I missed it. I’m late.” For this reason, they are drawn to low-value currencies, altcoin, which in the end will get no value in the long run. They think that coins traded for less than a dollar will somehow become the “next bitcoin”. The problem here is that there is no “next bitcoin”. Bitcoin was, and is, a historic accident, like the discovery of fire by our ancestors. For context, let’s discuss the basics of the Internet.
1 In the early 1990’s, only a small number of people had access to things like email and forums. At the time, the internet was a weirdness. Many did not know where it was going. Very few people can imagine social networking, social media, iPhones, online conferencing and online businesses and especially Amazon, which will be established in 1994 as a bookstore. I think we’re here with Bitcoin. We are still very, very early. Especially because a lot of people are not aware of all the developments that are happening and we are talking about what is being built on top of Bitcoin.
A project is being developed on top of the Bitcoin blockchain called Layer 2 Solutions – Lightning Network, which now has more than 1,000,000 nodes and six, 300 payment channels across all six continents (sorry, Antarctica). And then comes the Layer 3 solution, the decentralized application that is being built on top of the Lightning network. The goal is to create a new peer-to-peer Internet. Which is not under the control and censorship of Big Tech. In this way, it can understand the basic principles of the Internet.
Using the infrastructure that companies are building, we see the first glimpses of projects that will enable people to call Lightning nodes and use Lightning to monetize any service without a bank account.
We are witnessing an early stage of evolution. We don’t know where it is going. Bitcoin’s Layer 1, the settlement level, has proven to be the best source of value, with countries accepting it as a legal tender and relinquishing global dominance of the US dollar. The Lightning Network has proven itself The best means of exchange. And now we have Layer 3, the emergence of decentralized applications. Future companies will be built here. This makes Bitcoin even more scarce for the functionality it provides.
Bitcoin users have used roughly the same amount as the Internet back in 1997. However, Bitcoin is growing rapidly. If it continues, we could have more than a billion users in the next four years.
The daily price movement of a single bitcoin is mere noise. It doesn’t matter what price you are buying. You don’t have to take my word for it. There are individuals and group deviations who are smarter and richer than me who see current prices as a blip. Use Plan bWith its “stock-to-flow” model, we are steadily moving towards $ 1,000,000 per currency. Worrying about where we are trading at the moment is like worrying about the share price of Amazon or Apple in the late 2000s. We’re just getting started. The Lightning network is still getting stronger.
These are very exciting times. I am fortunate to have survived and seen the dawn of the modern Internet and its evolution to this day. With Bitcoin, not too late, we still have a chance to participate in its evolution.
This is a guest post by Paul Opokur. The opinions expressed are entirely their own and BTC, Inc. Bitcoin Magazine.