Bitcoin is the only tried and tested peer-to-peer network for Internet money. Creating a secure and stable network for global money that isn’t owned or controlled by a single organisation or country is one of the most difficult challenges in technology, politics or economics today. Various forks over the years have unbundled the medium of exchange function from the store of value function of money. It is still unclear if a single asset can meet the technical requirements of a global medium of exchange as well as a store-of-value. This is the classic “pay for my coffee” versus “digital gold” narratives that have played out over the years. The Lightning network may well enable Bitcoin to be both, but even if Bitcoin doesn’t become a global payment network, a digital store of value is still a critical problem to solve.
We believe Bitcoin with a first mover advantage, public mindshare, and absolute focus on security above all else makes it the perfect candidate as a global settlement layer. While we believe that there is a role for combining logic and ledgers for many applications, Bitcoin and the Bitcoin network is still the most secure and trusted technology for peer-to-peer Internet money. Ultimately we have to ask ourselves, how many crypto-assets will the average user hold? It’s unlikely a wallet will hold hundreds or even tens of different payment tokens. Assets that hold their value and can be quickly and easily traded will be the ones in most demand, with things like Uniswap and Airswap or other services exchanging for access tokens in the back-end. This is why we think Bitcoin will be an important technology for the Convergence Stack.