How is Stacks L2 good for Bitcoin?
Some quick points:
(a) Stacks enables a fast & cheap way to move around BTC; similar use and utility as Lightning or other layers that helps with BTC adoption by users.
(b) Stacks L2 increases demand for BTC as BTC gets deployed in contracts running on L2. More demand for BTC is good for Bitcoin.
(c) Stacks turns BTC into a productive asset as users can earn yield on it, in a decentralized way (with risks of course). That makes BTC more valuable as a productive asset vs. a passive asset.
(d) Stacks can take away some traffic (like Ordinals trading) off the L1, as people will find it cheaper/faster to do such trades on the L2. So a release valve for traffic when L1 becomes congested.
(e) People interact with sBTC peg in and out transactions and also several contracts and functionality by doing direct L1 transactions. This sends more revenue to BTC miners as fees.
(f) Stacks is one of the largest L2s deployed in real production. $1B+ in capital locked, most major DeFi primitives deployed on mainnet, large dev community etc. All experiments running on Stacks and lessons learned pave the way for other L2s and devs.
(g) The Stacks project is instrumental in popularizing and expanding the Bitcoin L2 category. It brought a lot of attention, capital, and users to it. A growing Bitcoin L2 market is good for BTC.
Let’s all focus on growing the Bitcoin pie. The Stacks devs are playing their part
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