BitcoinCryptocurrency News

Layer-Two Bitcoin Solution is Necessary, Says Head of Genesis Mining

In the year 2021, Bitcoin (BTC) has hit all-time highs and it is constantly making progress with the passage of time. Since 2017, it was for the first time when Bitcoin (BTC) prices started experiencing a surge from the beginning of 2020. From the beginning of the year 2020 towards its end, Bitcoin (BTC) again hit its all-time high in December 2020.

The main reason why Bitcoin (BTC) started gaining so much adoption and investments was because PayPal has integrated it into its platform. This resulted in Bitcoin (BTC) getting recognized by many financial investment firms. Many financial institutions soon followed the trend and started rallying on the Bitcoin (BTC).

In the year 2020, the biggest investment in Bitcoin (BTC) by a financial institution was made by MicroStrategy. The business intelligence firm reportedly invested more than $1.12 billion in acquiring around 70,000 BTC.

Later on, it was MassMutual that invested around a $100 million to acquire Bitcoin (BTC) and the list just keeps growing. However, with more investments coming in and more mainstream adoption being experienced, another concern is building up.

That concern is that whether Bitcoin (BTC) platform will be able to handle the amount of users and investments. This question gives birth to many other concerns related to its longevity as an investment asset and a financial solution.

Philip Salter who is the head of Genesis Mining has raised the same concern and asking if Bitcoin (BTC) will be able to do it without having to adopt a second-layer solution.

According to Salter, Bitcoin (BTC) is a very good solution for storing value even though it comes with really high fees and charges. To him the main concern is that as the fees keep rising for the Bitcoin (BTC) transactions, so do the minimum value that can be transferred with efficiency.

He stated that ever since the cryptocurrency industry started, Bitcoin (BTC) has managed to stay at the top of the industry. Even after 12 years, Bitcoin (BTC) does not cease to surprise people and it is still the largest cryptocurrency in the world by market capitalization.

In the present days, people no longer see Bitcoin (BTC) as a digital asset but a reliable and profitable store of value. He stated that Bitcoin (BTC) may start facing problems in the coming days.

Salter stated that in the past, making a transaction of a single dollar was no big problem as the transaction fees were zero. Now, the transaction fee has gone all the way up to $15 per transaction, which means that making a transaction for lesser amount is senseless.

Same is the case with Bitcoin (BTC) because with time, its transaction fees have been increasing and soon, it will start prohibiting people from transferring an amount that they desire.

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