U.Today - Bitcoin (BTC), the first and largest cryptocurrency, continues to be at the centre of discussions among financial experts. A recent statement by David Schwartz, CTO of Ripple, has drawn attention to Bitcoin's unique advantages that are not always obvious.
The discussion began by discussing the recent news that cryptocurrency could be used as a reserve asset by the U.S. Federal Reserve. As a reminder, Senator Cynthia Lummis proposed a bill that would create a strategic Bitcoin reserve, involving purchasing 1 million BTC over five years and holding them for a minimum of 20 years. This could reduce the national debt, the senator believes.
At the same time, some critics believe BTC is too volatile as a reserve asset and too impractical for day-to-day use when there are concerns about its ability to handle an increasing number of users, especially in light of rising transaction costs.
Beauty of Bitcoin
To prove this wrong Schwartz highlighted that Bitcoin is flexible when it comes to processing transactions. He pointed out that users can conduct transactions directly through the blockchain or use alternative methods that may be more suitable for their needs.Ripple CTO also explained that blockchain, as a decentralized registry, provides a basic level of reliability and transparency. Sometimes, centralized systems can process transactions more quickly and cheaply, while still keeping things secure.
This shows how Bitcoin can be used in different ways, depending on what the user needs. The fact it can be used for secure record keeping through blockchain and more efficient transactions through centralized systems makes it stand out from other assets.