As Bitcoin matures into its adolescent years, it stands on the precipice of life-altering decisions that could shape its future. The choices made during this crucial period can lead to irreversible paths, with little room for a do-over. As Bitcoin enthusiasts, the fear is that we’re on the brink of making a grave error that could have serious implications on Bitcoin’s future.
Bitcoin’s growth has been phenomenal of late. We’re experiencing a surge in Bitcoin’s value, hitting the 100k mark, and witnessing discussions about major countries considering the creation of Bitcoin strategic reserves. We’re at a point of no return, where people have become overly reliant on the narrative of Bitcoin’s inevitable victory.
However, a glaring issue remains: Bitcoin’s scalability. As it stands, if the world decides tomorrow that it is ready to fully embrace Bitcoin, we’d be in a pickle. The current system simply cannot handle everyone having their own Bitcoin. Many would have to rely on third parties like Coinbase or JP Morgan to hold their coins. This scenario leads to surveillance and lack of freedom, with the government having the power to seize coins at any given moment.
Even for the chosen few who can hold their own coins, the situation is not much better. They may have the power to prevent the seizure of their coins, but they themselves can be seized. They can be tracked, surveilled, and imprisoned for actions not approved by the government. This stifles innovation and freedom to build and spend as they wish.
Furthermore, the rise of stablecoins is inadvertently increasing demand for US Treasuries, even as our adversaries are reducing their purchases. These Bitcoin-inspired entities, which were created to ensure Bitcoin’s survival, are ironically propping up the dollar, contrary to the promise of overthrowing it.
Currently, the trajectory we’re on is one where Bitcoin actually aids government surveillance and control. This is primarily because Bitcoin’s scalability is limited, and there are no sustainable privacy tools that are both cost-effective and easy to use.
The path ahead seems to favor those willing to comply with government regulations and surrender any dreams of Bitcoin effecting significant change. The rich get richer, and the status quo remains. To prevent this, we must acknowledge these issues and support solutions that mitigate their impact, instead of turning a blind eye and claiming that “Bitcoin has already won.”
Bitcoin has immense potential to bring about positive global change. However, this is only possible if we avoid overconfidence and apathy towards these pressing issues. We must not let the youthful arrogance lead us down a perilous path. Bitcoin is too important to squander its potential with reckless adolescent mistakes.
The views expressed in this article belong solely to the author and do not necessarily represent those of Bitcoin Magazine or BTC Inc.
