How Bitcoin's technical evolution impacts the modern economy

[john_egbert]

@john_egbert is correct that there are already service providers dedicated to "infrastructure" services in the financial world, like remittance providers and payment processors.

But the problem is currently still volatility. Volatility leads to relatively high costs for the companies who offer these services because they have to hedge against losses due to unexpected price swings.

Bitcoin, above all considering layer-2s, can indeed be an interesting payment infrastructure and can also be scalable via LN and sidechains (and perhaps soon, new tech like Ark). This is because you have less middlemen fees (only miners) and thus in theory you could offer services cheaper than within the traditional financial system.

But due to the volatility, this advantage is smaller than it could be. Thus, I expect some more time for OP's prediction to become true. Both short and long term volatility is still too high to really create a massive "payment infrastructure sector".

Eventually, volatility will be less and less of a factor because to move BTC in any direction would be a feat of in itself, that's how I see it.. And I agree with you on it taking more time.

[Odohu]

Nope.

I don't see it would happen, altcoins are better I guess even though it fails in decentralization.

In Bitcoin, we can't access our wallet by just connect the wallet to any sites. In altcoins, it's possible, this make easier to interact with every projects.

We're talking about a "system" not just a "currency".

You are not being fair to Bitcoin in my opinion. I don't know if it is because you are unaware of how far the world have gone in terms of Bitcoin adoption or you have been engrossed in the news around these overhyped altcoins that made you fail to understand that we already have innovations that allow the use of Bitcoin on a go through various payment processors. There are several payment processors that allows payment through Bitcoin in a secured way.

[fredericktaylor]

You have Bitcoins next era figured out, so you are not just dreaming .  With actual usage not just hype Lightning Network is already dominating. public capacity is over 5000 BTC & expanding quickly. Also channels are becoming larger & more effective.  Settlement is sub second & fees are hardly more than pennies.  Upgrades to Taproot maintain trustlessness while making Lightning payments private onchain & indistinguishable.

In the meantime institutional power is flooding in, hedged funds stacking Bitcoin, ETFs onboarding funds transforming Bitcoin from digital gold into the foundation of contemporary finance.
So you are absolutely correct, Bitcoin is developing into a legitimate worldwide financial system.

Right, it is very easy to make fast Bitcoin transactions through the Lightning Network with a small fee. Over time, the credibility of Bitcoin is increasing among people, a large number of people are showing great interest in investing in Bitcoin because they believe that Bitcoin is digital gold, it is possible to protect against inflation by investing in Bitcoin. Large institutions are showing great interest in investing in Bitcoin because it is becoming a big part of the global economy.

[nemesis_incarnate]

Right, it is very easy to make fast Bitcoin transactions through the Lightning Network with a small fee. Over time, the credibility of Bitcoin is increasing among people, a large number of people are showing great interest in investing in Bitcoin because they believe that Bitcoin is digital gold, it is possible to protect against inflation by investing in Bitcoin. Large institutions are showing great interest in investing in Bitcoin because it is becoming a big part of the global economy.

If LN and BTC itself becomes more used overall - that would be a dream come true.

Not as a reserve as most countries see it - but as something that would be an option just like fiat for anything.

 

[AVE5]

You have not still said anything new apart from the same ideology that has been there before now and has been repeatedly said many time. Bitcoin is already a decentralized coin, has been used for p2p transaction since the past years and as times continues the more the adoption grows and the more the value goes up to and what may come. That's what been knows already, what you should do it keep accumulating, keep protecting your privacy and security.

Bitcoin development and it core has stared advanced technological ideals and innovations amongst the community users all to enhance a more friendly friendly technologies to mitigate conveniences for users in both centralized and decentralized factors while the core decentlization behind the basics and foundations of the financial technology remains uncontestable except for users who decides to deal or associate with the regulatory networks such as holding and processing of bitcoin (funds) on the centralized exchange p2p.
The aspect of the technology's securities and privacy potential has long been layed from the foundation by Satoshi Nakamoto the foundation of bitcoin and the developer of a successful digital currency with a cryptography while a more technologies to support the decentralized and technical system is also advancing to fit-in with the level of current and modern technology in accordance to how it financial integrations can be potential to hold values in the economy system.

[Ahli38]

BTC is already being used not only for speculations on its price, but for services, international transactions without any strings attached to them, and so on.

CBDCs will be there for sure, but they won't be able to cross and halt BTC in its track to adoption and being the best alternative to fiat.

Just don't worry about it and accumulate more

When last did you heard of CBDC, last I saw a headline about it was Trump was getting it scrap and banned, I haven't heard anything about them again. It was a party agenda to create a competition with Bitcoin as a blockchain for transparent money payment but it failed and it didn't just failed, it was a beautiful one for that matter and Bitcoin that has been mocked years back is doing wonderfully than ever, this is to tell you that propaganda doesn't last in tech.

Take a look at Bitcoin mempool, a single input output would cost you less than a dollar, where is it done in the US payment system? You will pay fees that are ridiculous. In some other countries you are going to pay vat from the sender, this isn't applicable to who received the money instantly. This is what Bitcoin has done that no technology hasn't been able to beat all this while, the technology and the concept has never existed before now, even the ones trying so hard to be like Bitcoin aren't close.

Source

Perhaps they haven't heard the latest news about CBDC, where Trump has banned the issuing and endorsing of central bank digital currency as it could threaten financial system stability, individual privacy, and United States sovereignty, according to Trump's directive. He even supports the development of blockchain technologies, one of the goals of which is to protect the rights of every citizen to access blockchain networks without the threat of unlawful censorship. So I think this needs to be known for those who don't know it yet. And so that we can have a relevant discussion about the current situation. But I personally don't think it's a mistakem where they may forget or even not follow related news. Discussions about CBDC have previously been made by several news outlets. One of them is from World Affairs In Context. (Source)

[famososMuertos]

Everything you're mentioning isn't just the future; it's already the present, and its impact is set to grow over the next 20 years. It's incredible, isn't it? For a technology that once had more detractors than followers, its adoption has been something organic, growing from the idea itself. The future of Bitcoin's use isn't some distant event—it's happening today. That might sound a bit contradictory, but you have to understand that Bitcoin's scalability is based on many of the things you mentioned, and these solutions aren't just theoretical; they work.

Regarding that final phrase you used about modern economics, I think Bitcoin makes perfect sense of it in the present day. Right?!

[Bitsies02]

I believe that sometime in the future, perhaps within the next 5-10 years, Bitcoin's role will begin to shift from being merely a speculative instrument to becoming a decentralized financial infrastructure. At the protocol level, this efficiency will increase through the adoption of taproot and layer-2 optimizations, perhaps like the Lightning Network, which will open up opportunities for low-cost, real-time transactions and potentially global scale. Modern integrated payments, open APIs, and user-friendly non-custodial wallets will make Bitcoin more compatible with the needs of the digital economy.
On the other hand, the influx of institutional capital through ETF and custodial platforms will strengthen Bitcoin's position as a digital store of value, in line with the current trend of asset tokenization and the penetration of CBDC. And network resilience is supported by node decentralization, increasing hash rates, and flexible market-based transaction fees.
As someone who enjoys analyzing and studying technology, I feel that these dynamics, along with the ever-evolving regulations, have led me to believe that Bitcoin has great potential not only as digital gold, but also as a foundational layer for transactions, value settlement, and global financial innovation.
what do you think about it?

Bitcoin is no more speculative instrument as stated above
Bitcoin is in decentralised transaction which makes it easier for transactions and widely accepted by many .