A tech investor who supported ridesharing platform Uber in its formative years has ignited controversy within the Bitcoin community by asserting that Bitcoin will sooner or later be supplanted by something superior.
“Bitcoin has played a fascinating role, but with a couple of major players monopolizing the market, now is the right moment to ‘create a better Bitcoin’ — starting the game anew,” noted renowned angel investor and internet entrepreneur Jason Calacanis to his 981,600 followers on X on March 14.
Calacanis, an early investor in Bitcoin-related ventures such as the online trading service Robinhood and the Bitcoin startup Keza, stated, “All technology eventually gets replaced… and Bitcoin is no exception.”
Opportunities arise for Bitcoin layer-2 initiatives
Co-founders and executives of Bitcoin quickly countered these claims, asserting that Bitcoin is here to stay, but acknowledging that a dominant layer-2 protocol may still develop atop the Bitcoin network.
Source: Pierre Rochard
Brady Swenson, co-founder of Swan Bitcoin, remarked, “Winning protocols are not replaced; they are built upon.”
“Bitcoin will never be replaced as a medium for value transfer. The competition is still on for the leading second layer protocol,” Swenson added.
Cory Klippsten, Swan’s other co-founder, mentioned, “Bitcoin represents a technological revolution reshaping entire industries, rather than merely adhering to the adoption cycle of a single device like an iPad.”
Source: Jason Lowery
Sharing a similar viewpoint, Lightspark CEO David Markus commented, “What Bitcoin lacks in capabilities can be constructed on layer-2s.”
“Attempting to create a better Bitcoin is a misguided pursuit.”
Meanwhile, ShapeShift CEO Eric Voorhees stated that Bitcoin’s limitations can be addressed “on alternative chains.”
The larger Bitcoin grows, the “less likely” it is to be replaced
Many industry experts have highlighted the significance of layer-2s for Bitcoin, as they introduce use cases that the Bitcoin network cannot accommodate, such as enabling smart contracts.
However, Muneeb Ali, co-founder of Stacks, recently informed Cointelegraph that over two-thirds of existing Bitcoin layer-2 projects may not survive the next three years as their initial enthusiasm wanes.
Source: Gastón Silva
Bitcoin advocate Wayne Vaughan asserted that many people mistakenly believe Bitcoin is easily replaceable because they view it merely as an asset, application, or platform.
“I perceive Bitcoin as a network. As the network expands, the likelihood of it being replaced diminishes,” Vaughan stated in a March 15 post on X.
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Strive Funds CEO Matt Cole commented, “There will not be a ‘better’ Bitcoin. I suspect we will experience occasional alt seasons of ever-declining intensity that will continue to profit insiders. Most individuals will likely end up holding less Bitcoin by indulging in that gamble.”
This isn’t the first instance where Calacanis’ remarks have fostered debate within the crypto community.
In June 2020, Calacanis claimed that nearly all crypto projects globally are managed by “unqualified idiots” or “grifters” with subpar skills.
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