According to U.Today, as summer enters its final month, Bitcoin (BTC) has become a focal point of discussion among financial experts. A recent statement by David Schwartz, the CTO of Ripple, has drawn attention to the unique advantages of Bitcoin, which he describes as having a special beauty. The recent news that Bitcoin could be used by the US Federal Reserve as a reserve asset has sparked significant debate. Senator Lummis has proposed a bill to create a strategic reserve of Bitcoin, involving the purchase of 1 million BTC over five years and their storage for at least 20 years. The Senator believes this could help reduce the national debt.
The debate has divided opinions. Bitcoin proponents are optimistic about the potential success of such a decision, while critics argue that BTC is too volatile to serve as a reserve asset and impractical for everyday use. Critics also question Bitcoin's ability to handle a growing number of users, especially given rising transaction costs. Schwartz, a leading cryptography expert and one of the architects of the first prototypes of decentralized registries, countered these arguments by highlighting Bitcoin's flexibility in processing transactions. He noted that users can choose to conduct transactions directly through the blockchain or use alternative methods that may be more suitable for their needs.
Schwartz emphasized that blockchain, as a decentralized registry, provides a basic level of reliability and transparency. However, he also acknowledged that centralized systems can sometimes process transactions faster and cheaper while maintaining security. The choice, he said, is entirely up to the user. Schwartz's statement suggests that Bitcoin can be used in different ways depending on user needs. Its ability to provide secure record-keeping using blockchain and more efficient transactions using centralized systems sets it apart from other assets, which he believes is the true beauty of Bitcoin.
