BTC ecosystem is unique
As a pioneer in the cryptocurrency world, Bitcoin (BTC) has unique technical features and ecological composition. BTC uses a non-Turing-complete scripting language, which means it cannot support many complex calculations, resulting in few projects in the ecosystem and slow progress. At the same time, BTC's consensus is extremely "Maxi" style.
The following is a chart showing the percentage of BTC holders holding their shares:
Held for more than 10 years (16.6%): A large portion of BTC is permanently lost.
Held for 3 to 10 years (30.4%): A small portion of BTC is permanently lost, and the rest are medium- and long-term traders and firm Bitcoin Maxi.
Holding 1 to 3 years (19.3%): Medium-term traders.
Holding for less than 1 year (34.6%): short-term traders.
In the entire BTC ecosystem market, BTC that truly provides liquidity only accounts for about 35% of the current total tokens. Because many people regard BTC as "digital gold" and hold it for a long time as a safe-haven asset, BTC is the only thing they believe in.
The value of BTC comes from its uniqueness
The high value of BTC today is largely due to its consensus value. Bitcoin Maxi attaches great importance to this point, and rarely hears of similar terms like Ethereum Maxi or Solana Maxi. Looking back at the development history of BTC, it did not receive much attention in the first few years, and the price was extremely stable. It was not until a big rise in 2013 that it gradually attracted more and more users. Those early supporters (OG) who have been preaching have become more and more determined and have become what everyone calls Bitcoin Maxi.
With the birth of Ethereum in 2015, smart contracts exploded the market, and people gradually discovered the limitations of BTC. BTC has become a safe haven asset for everyone, and 65% of BTC has been held. I believe that in addition to being the first crypto asset to appear, BTC can maintain its current high value because of its "expensive and difficult to use" characteristics. The transaction fees on Bitcoin are higher than other networks, the transaction throughput is lower, and the ecological construction is extremely slow due to the non-Turing complete characteristics. Because of these "problems", users regard it as a treasure and do not operate it easily, just as precious as paying with gold.
What problems should the BTC ecosystem solve first?
The current BTC ecosystem can be roughly divided into two groups: native technology group and user-oriented group. The native technology group mainly explores the potential based on Bitcoin's unique UTXO and scripting language and attempts to develop projects. The user-oriented group mainly uses the current mature conditions to quickly develop new products to serve market users.
I believe that the BTC ecosystem should first improve and expand native technologies and create new protocols/projects to revitalize BTC's capital utilization. Technological innovation in each cycle is bound to be an indispensable part. For the BTC ecosystem, technological innovation should be more reflected in breaking through its original limitations, rather than moving Ethereum's gameplay to the BTC ecosystem, which has a lower ceiling.
In addition to technological innovation, liquidity is another core factor. The abundance or scarcity of liquidity determines the bull market and the bear market. How to improve liquidity is an important direction in the BTC ecosystem. Improving liquidity can be achieved by revitalizing the circulation of funds on the exchange and attracting new off-exchange funds to enter the market. Revitalizing funds on the exchange means increasing everyone's willingness to trade assets and attracting long-term BTC holders to participate in market transactions. Attracting new funds into the ecosystem, such as through BTC ETF, can drive a large number of traditional users into the market and bring liquidity to the BTC ecosystem.
How to find a good BTC ecosystem target
Combining the above three points, I believe that the target screening principles of the BTC ecosystem are mainly the following four points:
Original technological innovation
Inheriting the security of Bitcoin mainnet
Able to empower BTC itself
Lower the user threshold
Inheriting the security of the Bitcoin mainnet and empowering BTC itself is mainly because everyone believes in BTC and the consensus is BTC, not derivatives other than BTC. Directly empowering BTC and enhancing consensus are in line with the concept of Bitcoin Maxi, which can attract them and new users to participate in the market. Lowering the user threshold is to improve the liquidity of the ecosystem.
For example, Babylon uses native technical innovations such as Bitcoin timestamps to allow users to earn extra income while retaining BTC. This BTC interest-earning method does not increase too much additional asset security risk, but can also earn extra income. For market users, it will be a very attractive project.
In short, the future development of the BTC ecosystem is full of opportunities. Through technological innovation and improved liquidity, the BTC ecosystem will become more prosperous.
#BTC☀ #TON #tia. #Bond #POLS $BTC $BNB $SOL
