The evergreen trend. Why Bitcoin is still in demand and will always be
Recently, the Bitcoin blockchain processed its 1 billionth transaction, according to Clark Moody Bitcoin. Despite the skepticism of many financial experts, the first cryptocurrency has not only survived but also strengthened its positions.
Bitcoin’s ecosystem has proven to be super dynamic and innovative. This dynamism can be attributed to numerous improvements inspired by this blockchain, including Ordinals, DeFi developments, and other breakthroughs. Moreover, following the latest halving and the approval of spot-Bitcoin ETFs in January, Bitcoin surpassed Taylor Swift and Beyoncé in Google Search popularity, demonstrating that it is a force to be reckoned with.
In this article, we’ll explain why Bitcoin will remain an evergreen trend, continuing to develop and gain popularity.
Bitcoin: Fighting Government Control
In this article, we’ll explain why Bitcoin will remain an evergreen trend, continuing to develop and gain popularity.
The Bitcoin story originated from the cryptopunks movement, an informal group of individuals passionate about maintaining anonymity and interested in cryptography. They aimed to reduce government control over the financial system. The financial crisis of 2008 significantly fueled this movement. Subsequently, Satoshi Nakamoto consolidated the developments of the cryptopunks and created the Bitcoin blockchain, which began operation on January 3, 2009, when the first block was generated.
Since then the system has undergone many changes and improvements. It is becoming increasingly clear that interest in BTC will stabilize among the general public as more people come to trust this ecosystem, hold bitcoins, and contribute to making the first cryptocurrency less volatile. However, it’s crucial to recognize that the crypto community needs to continue developing the positive trends currently present in the Bitcoin ecosystem. Here are the major ones.
Ordinals. A path to DeFi
BRC-20 tokens and Ordinals on the Bitcoin blockchain have laid the foundation for further Bitcoin integration into the DeFi ecosystem. According to CoinGecko, there has been a significant increase in trading volume, and the number of collections experiencing skyrocketing prices is impressive.
The decentralized nature of Ordinals, which involves storing content on the blockchain through inscriptions, has realized the cryptopunks’ dream of a more independent, financial censorship-resistant structure. Thus, a fairer system where people can choose how much they want to pay to expedite their transactions has become more tangible.
Many blockchain experts, including Arthur Hayes, have already invested in Ordinal startups like Oyl, which is developing a new Bitcoin wallet that will allow trading of BTC and Ordinal inscriptions.
In April, Magic Eden led in trading volume among NFT marketplaces with $486 million. Blur gave up the lead for the first time since its launch, according to a DappRadar report. Now it’s in second place with UniSat Ordinals marketplace breathing down its back.
Magic Eden’s and UniSat’s popularity is due to its support for Ordinals — trading tokens issued using the protocol accounts for 70% of the market volume. This will definitely support market aggregation of the BRC-20 standard and expand the user base.
Moreover, the tokenization of real-world assets (RWAs) such as stocks, bonds, and real estate on the Bitcoin blockchain will pave the way for new markets and financial instruments, creating opportunities for both seasoned investors and newcomers. This will also broaden the range of assets available for DeFi applications and enhance liquidity.
Thus, Ordinals and tokenization in general have laid the groundwork for Bitcoin integration into decentralized exchanges. However, this approach has made Ordinals more expensive and limited in size. Many Bitcoin maximalists believe that this slows down the entire system and compromises the security and reliability of the Bitcoin blockchain. And their fears are not meaningless.
Finding a balance between creating new opportunities and addressing scalability and transaction fee issues is crucial. As often happens, challenges spur progress. When experts recognized that Bitcoin might be compromised by numerous innovations due to its less scalable nature compared to Ethereum, bright minds developed several solutions to address these issues. One such solution is the Lightning Network.
Layer-2 savior. Lightning Network
As BRC-20 tokens are not as flexible or easy to use as ERC-20 tokens, it was clear we needed a way to make the Bitcoin blockchain more adaptable. That’s why Layer-2 solutions like the Lightning Network have become essential, serving as special tunnels that help Bitcoin handle more traffic without becoming too crowded. This technology has proven that Bitcoin can manage a large volume of transactions without becoming slow or expensive.
The Lightning Network uses micropayment channels to enhance the blockchain’s capability, making transactions faster and cheaper. Essentially, it facilitates a transaction mechanism between two parties, where each can make or receive payments from the other. As a Layer-2 solution, the Lightning Network uses the core blockchain as the first layer, while the secondary layer adds functionality and improves performance.
The adoption of this innovation is evident from the transaction volumes. Statistics show that the number of Lightning transactions significantly exceeds those at the basic blockchain level.
While Bitcoin may face challenges in developing robust DeFi protocols and applications compared to Ethereum, its solid foundation and the growing ecosystem of BRC-20 tokens still pave the way for innovative solutions.
This situation serves as an excellent litmus test for Bitcoin’s promising future in DeFi. As these Layer-2 solutions continue to evolve and become more sophisticated, they will increasingly support essential DeFi services such as lending, borrowing, and trading, which are just as crucial as smart contracts.
Smart contracts implementation
The development of Bitcoin smart contracts will open up a world of possibilities for DeFi, potentially bringing the Bitcoin blockchain on par with the Ethereum blockchain in terms of capabilities. Critics have long argued that Bitcoin is not as flexible or scalable as Ethereum, which has historically been the preferred platform for building DeFi projects due to its rich ecosystem of smart contracts.
Now, BRC-20 smart contracts will enable developers to build applications on Bitcoin as easily as on Ethereum. This means that activities such as borrowing, lending, and trading can now be conducted without the need for third parties.
Projects like BitVM already demonstrate the vast potential of Bitcoin. It plays a crucial role in bridging BTC to second layers such as sidechains, rollups, and zkCoins. These second layers can scale Bitcoin to billions of users, making it more accessible and user-friendly.
Conclusion
Overall, these emerging innovations will contribute to the growth and maturation of Bitcoin’s DeFi ecosystem, enhancing its capabilities and solidifying its position as a cornerstone of decentralized finance. Jade ARdinals are no exception.
The unique nature of Bitcoin, making it more secure and less volatile than any other cryptocurrency, positions its blockchain as the prime choice for developing innovations.
Furthermore, increasing investment in Bitcoin ETFs also helps stabilize this ecosystem. For instance, trading giant Susquehanna International Group (SIG) invested $1.2 billion in seven spot bitcoin-ETFs in Q1 2024. Additionally, the company increased its stake in the ProShares Bitcoin Strategy ETF (BITO) by more than 57%.
According to Blockworks, the total ETF market cap is now $74.23B.
Experts suggest that Bitcoin’s value could rise to $10 million over the next 15 years, and that may not even be the limit.
With all this in mind, Bitcoin’s promising financial future, along with new ways to enhance its flexibility, interoperability, and functionality, make it an ideal platform for developing innovative products like Jade ARdinals.
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