A technology investor who was an early supporter of the ridesharing app Uber has encountered criticism from the Bitcoin community after suggesting that Bitcoin will inevitably be supplanted by something superior.
On March 14, this notable angel investor and internet entrepreneur expressed to his 981,600 followers that “Bitcoin has been a fantastic game, but as large players dominate the market, it’s time to ‘create a better Bitcoin’ — essentially starting over.”
Having invested early in crypto-related ventures like the online trading platform Robinhood and the Bitcoin startup Keza, he remarked, “All technology is eventually replaced… and Bitcoin will be no exception.”
### Opening for Bitcoin Layer-2 Initiatives
Co-founders and leaders within the Bitcoin space were quick to counter this notion, contending that Bitcoin will not be displaced, although they acknowledged the potential for a strong layer-2 protocol to arise atop the Bitcoin blockchain.
Swan Bitcoin co-founder Brady Swenson stated, “Winning protocols aren’t replaced; they are built upon.” He asserted, “Bitcoin will never be replaced as a medium for transferring value. The competition is still ongoing for the premier second layer protocol.”
Cory Klippsten, another co-founder of Swan, added, “Bitcoin represents a technological revolution impacting a wide range of industries, not merely adhering to the adoption curve of a single technology like the iPad.”
Similarly, Lightspark CEO David Markus remarked, “Any functionality gaps can be addressed through layer-2 solutions.”
> “Attempting to create a better Bitcoin is a fool’s errand.”
In the meantime, ShapeShift CEO Eric Voorhees indicated that Bitcoin’s limitations might be resolved “on alternative chains.”
### The Growing Resilience of Bitcoin
Many industry figures have highlighted the significance of layer-2 solutions for Bitcoin, as these can facilitate functionalities that the Bitcoin network alone cannot support, such as deploying smart contracts.
Nevertheless, Muneeb Ali, co-founder of Stacks, recently noted that more than two-thirds of current Bitcoin layer-2 projects may not survive beyond three years as initial enthusiasm wanes.
Bitcoin advocate Wayne Vaughan pointed out that many people mistakenly believe Bitcoin is easily replaceable because they view it merely as an asset, application, or platform. “I consider Bitcoin as a network. As the network expands, the likelihood of another replacing it diminishes,” Vaughan stated in a March 15 post.
Strive Funds CEO Matt Cole expressed, “There will not be a ‘better’ Bitcoin. I expect we’ll see occasional alt seasons of waning strength that will line the pockets of insiders. Most individuals will end up with less Bitcoin by engaging with that casino.”
This is not the first instance where the investor’s remarks have ignited discussion within the crypto sector. In June 2020, he claimed that nearly all cryptocurrency projects globally are controlled by “unqualified individuals” or “grifters” with subpar skills.