Stable coins will all migrate to Kaspa. Value falls to the marginal cost of production and Kaspa provides that value. It saddens me more BTC maxis canât see this because of their religion. L2s are not a solution. Itâs the same broken system we currently have.
Not #Bitcoin, But #Kaspa Is Quietly Becoming the Perfect Money: And Nobodyâs Ready for It https://captainaltcoin.com/not-bitcoin-but-kaspa-is-quietly-becoming-the-perfect-money-and-nobodys-ready-for-it/
Discussion
That's true. I never liked Lightning
Itâs not that I donât like it, itâs just not final settlement. When you own lightening sats, you donât own BTC. Somebody has to grant you permission to transfer.
That's why I switched to Kaspa
I buy both every week. Bitcoin will be used as a store of value for a very long time. But Kaspa will service payments on a blockchain.
I would consider Kaspa as a store of value, too. At the moment, both are excellent options, but the money market is a "winner takes all" market. Therefore, Kaspa as the better form of money due of its better salability across space and its scability potential, will likely take a significant share from Bitcoin due to the centralization problems with Layer 2 solutions.
This probably wonât happen within the next five to ten years, but as soon as mining rewards become too low and the network relies solely on fees, there will be a lower incentive for miners to support the network if they can earn more with Kaspa.
So, while Bitcoin remains an excellent option as SoV, this shift is just a matter of time in my opinion. đ¤
Youâll have to defend why you think the money market is a winner take all. Gold is a tens of trillions dollar market cap and Iâve never seen anybody trade in gold in person. It seems clear to me thereâs room for multiple financial instruments and money.
The reasons for the fiat standard are that gold serves primarily as a store of value, but it is not effective money across space due to issues of transportability and associated costs. Additionally, gold is not an ideal unit of account. Silver, on the other hand, was easier to divide, which is why both assets were used historically.
The gold standard was a solution for a certain period, but we all know what unfortunately happened during World War I, when more paper gold was issued than actually real gold in the banks existed. The same might happen with Bitcoin by using L2s.
The main reason for the fiat standard, however, is the political coercion behind its use, along with the lack of a better alternative in all three dimensions of the characteristics of money.
âThe reasons for the fiat standard are that gold serves primarily as a store of value, but it is not effective money across space due to issues of transportability and associated cost.â
This is my point. The dollar and gold have value. So will Bitcoin and Kaspa. Youâre making my point.
The difference is that there is no reason to hold Bitcoin while paying in Kaspa. A store of value and a means of payment do not exclude each other if it solves the money trilemma.
So, why should someone hold Bitcoin long-term if they need to swap it with high fees, when they can hold everything in Kaspa and save on fees as well?
In principle, youâre saying because there is a new asset that is a better form of money, thereâs no reason to hold the old asset. While I understand what youâre saying, it doesnât bear true in the real world. Look at gold and BTC. Just because BTC showed up, gold didnât go to zero. It takes generations for value to transfer from one asset to another, and even then, the prior assetâs value doesnât go to zero. Itâs very hard to say winner takes all when that hasnât been the case in all of history.
From what proportion would you discuss it so that other assets are no longer worth considering? I mean it should be clear that I donât mean exactly 100 percent. đ
Another point to consider is that while gold might not go to zero against the dollar, it definitely loses value compared to Bitcoin and Kaspa. One reason for this is the rapid rise of these newer forms of money, of course. Even though, this trend is likely to continue in the future.