Boring technology usually wins. It might seem outrageous to put Bitcoin and boring in the same sentence, but when those obsessed with innovation assess it purely within the world of digital assets, it is the more robust, stable, and secure option, i.e. it’s boring. Innovation hungry individuals and businesses have a blind spot. They believe that bigger, faster, and stronger equates to better, however, in the realm of infrastructure, boring is beautiful.
Slow by Design
It’s easy to forget that Bitcoin’s “limitation”, or features that are often called limitations by enthusiasts of rival blockchain technologies, were actually carefully and deliberately chosen by the anonymous team who built it. Those attributes gave it robust foundations. Consider Bitcoin to be a pyramid, where the wider the base, the higher you can build (currently almost $2tn high, we might add). The slow, simple, and conservative approach is not only that base, but a moat around it too, thanks to the security it delivers. Ethereum, Avalanche, and Polygon, for example, are more like skyscrapers – building upwards and upwards, decreasing stability.
Slow isn’t an inadequacy, it’s a survival mechanism. It’s the blockchain equivalent of the tortoise and hare – we all know who won that duel. Now, it begs the question: what if an innovation-hungry project had been the first blockchain and not Bitcoin? Would the industry have gotten this far? That’s food for thought.
Simple Isn’t a Bug, It’s a Feature
Being conservative, even if some deem it to be too conservative, is about preserving trust and predictability. In a volatile market and industry, that has become Bitcoin’s superpower. As other projects have collapsed, had internal fighting, rug pulls, liquidity issues, legal troubles, and more, the Bitcoin community has sat back with a quiet confidence that no other project could match. Bitcoin didn’t need a hype manager, KOLs, or a growth marketing agency. Its code did the talking, and people quickly called it “Digital Gold”.
Bitcoin recently flipped Silver on the list of the world’s largest assets, now taking 8th position. This is poignant. Silver has historically been seen as a stable store of value, but as it declines and Bitcoin’s trajectory moves in a positive direction, traditional and institutional investors have further reason to embrace BTC. The simplicity of Bitcoin’s underlying technology, knowing that it won’t change or wobble beneath your feet, is key. The BTC price, however, is a different story.
BTCFi is Not Just a Trend
Bitcoin DeFi, now being called “BTCFi”, is the validation of Bitcoin’s design philosophy. Established Dapp builders are now coming to build tools on top of Bitcoin’s secure, tested, and trusted base layer.
The long-awaited innovation is happening, but Bitcoin remains the same, it doesn’t need to change its foundations or base code to accommodate developers. In this way, it takes a different approach to Ethereum and Solana, cementing its immovable core and offering stability as its USP, rather than being at the cutting-edge of blockchain’s capabilities. BTCFi, therefore, is far less exposed to the risks of being at the forefront of innovation, and can continue to be slow and simple (and successful).
“Bitcoin Will Eat Everything”
There’s a popular theory among Bitcoin maximalists that BTC is the apex predator of the crypto world and that eventually and inevitably it will absorb the use cases and value of all other assets and protocols. One measure of this is the Bitcoin Dominance Chart, which shows what percentage of the entire cryptocurrency market is represented by Bitcoin. It’s been hovering around 60% for a while, but should it creep up to 70% or 80%, there would be a major cause for concern among altcoin projects.
Whether it be value storage, financial infrastructure, smart contracts, or Layer-2s, Bitcoin can really do it all. Once enough developers come to build on Bitcoin, taking the best ideas from rival blockchains, the “eating of everything” will become more overt. The network effect, Bitcoin’s massive security budget, and protocol ossification (its resistance to change) will become too appealing for many developers to ignore.
There will always remain a percentage of the market that wants to build separately and in their own vision, but their dreams of being a “BTC killer” are diminishing. Governments, the SEC, and even public opinion couldn’t stop this generational technology. Now it seems other projects can’t either.
Boring is Beautiful
Bitcoin’s boring qualities are precisely what has made it the ultimate platform for blockchain innovation. Ironically, whenever an alternative chain innovates, experiments, and brings new ideas and tools to market, they are taking the burden of innovation away from Bitcoin, only to later see it end up on the Bitcoin network. That is the real genius of having the widest foundations and the deepest moat.