Is Bitcoin, the world’s number one digital currency by market capitalization, finally gaining traction and widespread attention? According to two cryptanalysts (Alex Mann of Time Chain and Alyse Killeen of Stillmark), the answer is a resounding “yes.”
In a recent interview, Alex Mann. Time Chain partner and analyst, said he believes Bitcoin is no different from any other product or service, and that it is only a matter of time before the world realizes this. He stated the following:
“Basically, the only thing Bitcoin companies do is provide goods and services to customers that their customers [need] pay for as they would with any other supplier. Bitcoin is a technological layer, just like Internet, and Bitcoin companies use Bitcoin the same way Amazon uses Internet.”
BTC Is Becoming Better Known
Stillmark founding partner and analyst Alyse Killeen also weighed in, saying:
“Bitcoin has been adopted in both developed and emerging economies, but with different drivers and ‘killer apps. In developed markets, many use Bitcoin as an investment… In emerging markets, and for families divided between developed and emerging markets, remittances are the killer app.”
However, Killeen went on to say that one of the biggest problems is that the technology behind Bitcoin and the Lightning Network is not always understood by the public or even the people trying to develop and/or implement it. She further stated the following:
“Developing applications or business models that incorporate Lightning Network previously required a broad set of technical skills, and only recently have the infrastructure, development tools and user services been available for anyone to take advantage of the Lightning Network inside their app or business model.”
According to Killeen, this has been one of the main challenges, and a common problem with any new infrastructure technology, from the cloud to cybersecurity. However, she was quick to say that the talent needed for crypto companies is finally paying off. She stated that:
“Next, we have talent in the field who understand how to translate technology into use cases for their user base. When you see that type of business activity develop and flourish, what tends to be an adoption of the technology itself is because these founders can make it valuable and tangible.”
Some Issues Pending Resolution
Still, Mann believes there are several problems with the Lightning Network and that many changes are required for Lightning to handle excessive Bitcoin transactions. He said the following:
“If the use case is payments, are there still bottlenecks at scale? Yes, and especially for retail payments. the need is more obvious in emerging markets where there is no payments infrastructure, such as South Africa’s municipalities, but even here, there are still challenges to doing it profitably. With that in mind, the ecosystem is developing layers in addition to Lightning like Fedi… for b2b payments, Lightning appears to be highly desirable as it allows real-time settlement. companies like Synota or Vida that apply Lightning payments to the energy and telecom sector could change the rules of the game.”
The other great challenge is to win the hearts and minds of consumers and companies. For many, Bitcoin remains strongly associated with cryptocurrencies and tokens, which have now been widely discredited as little more than gambling. Crypto was also hurt by the FTX crash last year, and unfortunately, this mud has rubbed off on Bitcoin.
By Leonardo Pérez
