“Buoyed by innovations in cross-chain asset gateways and DeFi protocols, Ethereum has attracted a substantial amount of Bitcoin (BTC) assets, thus cutting into Bitcoin’s on-chain transfers.
Moving forward, this trend will pose severe challenges for Bitcoin’s network security, especially as BTC continues to phase out block rewards, leaving miners increasingly unable to generate income. Prior to the explosion of DeFi, BTC supporters were confident in their ability to generate income through the platform’s transaction fees — yet this appears to no longer be the case.
Given that Ethereum has surpassed Bitcoin as a settlement network, there is now a very real possibility that Bitcoin-based transactions may disappear in the future.
As Bitcoin continues to halve, miners are increasingly reliant on transaction fees, yet the fees are making up a smaller and smaller share of income as time goes by. Currently, it is estimated that transaction fees only cover 30% of mining costs — an insufficient amount, particularly as halvings continue and block rewards decrease.
In light of this challenge, the Bitcoin community has three options moving forward, namely increasing network fees, introducing Bitcoin-based DeFi, or implementing moderate inflation policies.”
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- New regulations driving traffic to DeFi
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“Upcoming CBDC experiments – there will be eight of them – will help us to investigate not only the potential of technology but also to question the players in the ecosystem on what tomorrow’s landscape could look like, on subjects as fundamental as the methods of exchanging financial instruments for CBDCs, the improvement of the conditions for executing cross-border payments or new ways of making CBDCs available to financial sector players.
In turn, these experiments will lead us to assess whether the regulatory framework currently in force needs to be adapted.”
“Bundle—a social payments app active in Nigeria and Ghana—is accepting Bitcoin Lightning payments. This is made possible by Bitrefill, which allows users to buy gift cards using Bitcoin. By using Bitcoin and Lightning Network technology, users are able to send fast digital payments around the world.
Nigeria is one of the most financially blockaded countries in the world and buying gift cards on @bitrefill is a way for Nigerians to access the global product market.”
“Jim Cramer, the host of CNBC’s Mad Money and founder of financial news site TheStreet, explained in an interview on his news site why he chose to invest in Bitcoin.
You want to diversify into all sorts of asset classes. I want to have a balance of assets.”