One day, we’ll just call Bitcoin ‘money,’ says crypto veteran (ft. Samson Mow)
When El Salvador’s president, Nayib Bukele, shared with the world that his “Bitcoin Law” had been approved by the nation’s Congress in a supermajority vote, it was a watershed moment for the original cryptocurrency, and for cryptos generally. The adoption of a crypto coin as a parallel currency was billed as a means of mitigating the Central American nation’s economic exposure to monetary policy made by another country’s central bank — the U.S. Federal Reserve — and of giving Salvadorans more direct control over their own financial affairs. Now, not quite a month later, issues of financial self-determination remain in the spotlight for Samson Mow, chief strategy officer of Bitcoin technology company Blockstream. “The key here is to bring sound money to the people,” Mow told Forkast.News in a video interview. “Now, when they’re earning a dollar in Bitcoin, they’re getting the same hard currency and finite amount of currency that Michael Saylor would get when he invests billions into Bitcoin”. But in order for Bitcoin to succeed as a superior currency to existing fiat money, the network must be able to support micro-transactions. That’s been a challenge, particularly in recent months — at their peak in April, average Bitcoin transaction fees topped US$60. “When you’re spending, you don’t want to pay a dollar for buying your groceries and then pay another dollar to pay for your [transaction fee],” Mow said. Layer 2 projects such as the Lightning Network and the Liquid Network are one means by which transaction fees can be lowered, as they decongest Bitcoin’s main chain by moving transitions off it. “The Lightning Network is kind of like a network of bar tabs,” Mow said. “When you go to a bar and you want to order a drink, you’re not going to pay for every single drink. You’ll give them your card and then they’ll charge you at the end of the day.” Although authorities in most countries are still grappling with the regulation of cryptocurrencies, Mow suggests that the increased adoption of Bitcoin will lead to what he calls “hyperbitcoinization” — a situation in which Bitcoin evolves is a ubiquitous currency. “At some point, you’ll reach a tipping point, or inflection point, where you just cannot convert dollars into Bitcoin,” Mow said. “And at that point, your choice is to either mine Bitcoin or earn Bitcoin.” Watch Mow’s full interview with Forkast.News Editor-in-Chief Angie Lau to learn more about Bitcoin’s road to ubiquity, the lingering questions about the environmental impact of mining it, and how Layer 2 projects are paving the way for a Bitcoin-centric economy.