Bitfinex CTO: Bitcoin is the real currency on the Internet and will become the basic engine for future financial applications

If Bitcoin is to replace fiat currency and become the most commonly used currency in the future, it needs to implement a large upgrade in terms of scalability. So far, the Bitcoin ecosystem seems to have proven its utility as a long-term investment vehicle, but for many investors, due to the increasing volatility shown by this cryptocurrency leader, this This statement is also not entirely convincing.

Bitcoin is the real currency of the Internet

Image source: Pixabay

In 2018, the Lightning Network was implemented, which is considered a big step in the right direction, as it will greatly increase the scalability of Bitcoin. The solution claims to increase the speed of transactions within the Bitcoin network, allowing it to operate at faster speeds and with greater efficiency.

In a recent issue of POV encrypted podcasts, Paolo Ardoino, CTO of Bitfinex and Tether, talked about the importance and future of Lightning Network. He sees the Lightning Network as a way to design the second layer:

"The Lightning Network is the second layer of design. Although many people think that it has been running healthy in test mode for a long time, it still has a lot of room for improvement, which is certain. But the stack technology also needs A lot of human and brain investment. "

However, Adorno also pointed out that although Lightning Network is suitable for mainstream adoption, it still has many challenges in terms of usability and user interface. Regarding the implementation of the Lightning Network by the exchange, he emphasized:

"Several exchanges have decided to support the Lightning Network so you can move bitcoins faster instead of trading on-chain. This will allow traders to better take advantage of the spread between exchanges for arbitrage."

However, according to Adorno, although Lightning Network is a well-designed second layer, he feels that Bitcoin is still a good foundation layer. He went on to say:

"I believe that Bitcoin will become the underlying engine for many financial applications."

However, if Bitcoin is to become the basic engine of financial applications, even if it has solved the problem of scalability, its volatile nature will still be a challenge. According to market data provided by skew, in the past week, the actual volatility of BTC / USD has increased sharply from 52% to about 72%.

Bitcoin's actual volatility

BTC / USD Realized Volatility Chart | Source: skew

For many investors and crypto traders, as Bitcoin has experienced extremely difficult times in the past few days, its unpredictability has become the focus again. According to the Fear & Greed index, sentiment analysis tools show that market sentiment is "extremely frightened" after the price fell the day before. This is usually a signal of bullish sentiment, but also represents a buying opportunity.

Panic Greed Index

Panic Greed Index | Source: alternative.me

However, for Adorno, despite Bitcoin's recent ups and downs, it remains an important part of the future of crypto. He added:

"Bitcoin will be the real currency of the Internet, which is exactly what I am looking for."

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Babbitt Column | Blockchain industry to land, these areas still need to be greatly improved

I. Status Although each of us hopes that the blockchain can land as early as possible, and from the daily news, it se...

Blockchain

FTX's new CEO: FTX has been lying to banks about its mixed funds issue

FTX's new CEO claims that as early as 2020, banks had inquired about suspicious fund flows.

Blockchain

Korean or Korean? Bittrex Dreams New York

In June 2015, the New York Financial Services Department (NYDFS) became the first pioneer to develop a regulatory fra...

Blockchain

Sun Yuchen used capital hegemony to control Steem, causing controversy, the integrity of stolen users' voting rights was questioned

Recently, in order to prevent capital power on the chain, Steem witness nodes jointly launched a soft fork. God V des...

Blockchain

Coinbase CEO: Almost every economic field is struggling, and Bitcoin is the currency people need at this moment

Editor's Note: This article has been deleted without changing the original intention of the author. Coinbase, a ...

Market

The ultimate way out of cryptocurrency exchanges: decentralization (below)

The full text is brief: Alicoin|Exclusive view With the endless stream of asset security cases such as hacking and se...