…und contrast to the opportunists who envision success as a financial exit from their token project. For Bitcoiners, success consists of a day when no exit is required. Their admittedly eschatological philosophy anticipates a time when they will be able to participate…
…otocol and system of property rights that to alter it would cause the old system to cease to exist. Capped supply is not a feature of Bitcoin; the supply cap is Bitcoin. It is ontologically critical, like the consent of the governed is an inalienable component of the U…
…ghtning is an important building block in the emerging Bitcoin stack — but it’s only the beginning. As we see momentum coalescing around the Bitcoin protocol, we’re entering a unique period in Bitcoin’s history with compelling opportunities to deploy capital with teams that are building on Bitcoin.
Some of this functionality will be enabled by decentralized networks and protocols like Lightning, others will be enabled by centralized companies built atop these protocols and others will reside somewhere on the spectrum between the two (e.g. federated models like Blockstream’s Liquid or Rootstock’s RSK network).
As this vertical construction plays out we will continue to see more supporting infrastructure emerge as well as a lush and diverse ecosystem of applications and services emerge that facilitate a wide range of functionality for Bitcoin as programmable money. This industry began with a financial asset (Bitcoin) and financial infrastructure (the Bitcoin blockchain) and in the years ahead will continue to find the most utility in the realm of (non-sovereign) programmable money.
Of course, these phases aren’t strictly sequential: While we’re only in the first or second-inning of the onboarding phase, the Bitcoin stack and the applications and services that it supports will emerge concurrently and accelerate the onboarding phase.
I don’t think there is anything inherently wrong with the creation of credit, as it is the most basic component to finance. If credit is being created in a transparent way, on top of a reserve asset that is no one else’s liability, that’s a significant improvement over our current system. And I think it’s something worth pursuing.