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In my previous article I explained the concept of a Layer 2 on Bitcoin, why it is important and a basic understanding on how it works. Today I want to do a deeper dive into why this is such an important achievement, one we need to pay more attention to and start to have a higher level conversation about.
Let’s take a look at RSK (a Btc Layer 2 protocol),it is said to be the safest and most secure Smart Contracts platform out there. This is because it uses all the benefits of the Bitcoin layer 1, which is the most decentralized and robust cryptocurrency ever minted. We have finally reached the stage that Btc can take the next leap into the “Programmable Money” space without needing to sacrifice anything of what makes it so special, unlike the other smart contract platforms like Eth, Bnb and Sol.
To me this is a monumental shift in the crypto industry. From a philosophical and humanitarian point of view, I think we need an economic structure that is fair to everyone and no one has the power to manipulate. When push comes to shove, no other coin comes even close to Bitcoin in those aspects. For these, and many other reasons, I am in the belief that we need to focus on building our structures on top of Bitcoin (as opposed to other cryptos). Ensuring this way, the best future outcome. I know that most of the players in the market don’t think like I do and mostly just search for the next coin that will get them the biggest return. However, we need to start having deeper conversations about this. We need to plan ahead for our future, and create systems that cannot be tempered with. The future my friend, is decentralized.
Bitcoin at the end of the day represents ownership, the security that as long as you hold your keys you have access to your money forever. Owning Bitcoin means being part of an economic network that no one can stop, alter or cheat. No government agency can shut it down, we’ve seen both India and China ban it having little to no effect in the overall market. No one can change the money policy or the amount of Btc available. We know how it works, we know what it does, and we know it can be relied upon. This is why it is so important and different from other cryptos, most of which can change and are controlled by a small number of entities.
With the addition of a Layer 2, Bitcoin now becomes faster than ever, and cheaper to transact. We can now lend our Btc to people we don’t even know with 0 risk (using a smart contract that holds collateral in case the other party doesn’t pay). This, plus other cool stuff smart contracts can do, makes it so your Btc can start earning a yield. While at the same time allowing people to access capital from anywhere in the world. We are slowly getting all the functionalities of a bank, but without the bank. No middleman, no hidden charges, no screening, no KYC, no hierarchy, and it works!
Whatever money you are able to make you can keep forever, no outside entity can shut you down. This will revolutionize everything. The world is not changing, it already changed, most people aren’t aware of it yet.
I believe as time goes by this will become more and more obvious, and those who make the shift earlier will benefit massively. In the short to medium term I wouldn’t be surprised to see the Alt-Coin space to continue to draw attention away from Bitcoin. But in the end, as a society, we will need to shift to an independent economic structure. We have seen over and over throughout history what happens when people get the power to choose for other people, it never works in the long run. Bitcoin is just that, taking power away from anyone, a system that works in a truly decentralized way, fair, stable and censorship proof.
My goal is not to attack the other cryptos, but to understand why they are different and why Bitcoin is special. If you pay attention you will notice that very few people in the space talk about this, and they are almost exclusively looking at the price, searching for the next shiny thing. I believe when everyone goes fast, one should go slow. For those of you who seek a deeper understanding of what’s going on here, I’ll continue to write about this stuff. Never take what I say for a fact, I’m just a normal guy learning as much as I can and writing about it.
I hope this helps! Have a great day!!!
