The debate between the best use cases of Bitcoin [BTC] has raged on for a long time, with many suggesting different ways and technologies to obtain the asset’s full potential. In a recent Reddit AMA conducted by Dmitry Petukhov, the Chief Software Architect of Simplexum, opined on a question about advantages of liquid assets against tokens on systems like Ethereum or ERC20, other than building on BTC’s stable network.
To this, Petukhov replied,
“Confidential transactions (values and assets are blinded to those who do not possess the blinding key).Assets are native to the protocol, no need to write custom contracts in the turing-complete script and spend a lot of resources to audit these contracts.”
The AMA, which was also shared on Twitter, was endorsed by Adam Back, the Co-founder and CEO of Blockstream.
Petukhov further commented,
“Not only bitcoin’s stable network as a peg, but bitcoin’s stable tech in general. Simple non-turing-complete scripts which is possible to exhaustively analyze. Will be even simpler to build and analyze with miniscript.”
The Chief Architect of Simplexum also spoke about atomic swaps of assets on the Reddit thread. He went on to say that atomic swaps within the network do not take up a large set of instructions, but move in a smooth and functional way. He continued,
“Since assets are native, atomic swaps of assets within the network are simple cooperatively signed transactions, which can also swap multiple assets in one transaction (similar to EIP875, I suppose, but do not require any contract code – can be done with simple single-sig addresses).”
Bitcoin’s usage and entry into the mainstream realm was reflected by Bitcoin Liquid Indices being listed on Nasdaq. The stock market company, in an official release, stated,
“It provide a real-time spot or reference rate for the price of 1 BTC and 1 ETH respectively, quoted in USD, and based on the most liquid ends of their markets.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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