The head of Genesis Mining envisions the importance of tier-two Bitcoin solutions

Could Bitcoin and its blockchain be able to treat mainstream adoption as a store of value without the need for second-tier solutions? Genesis Mining’s head of mining operations, Philip Salter, has mixed views.

“I think Bitcoin is a good store of value regardless of transaction fees,” Salter told Cointelegraph. “The issue is – the higher the fees, the higher the less value that can be efficiently transferred.”

Bitcoin (BTC) has stood the test of time up to this point, with BTC maintaining its place as the crypto industry’s highest market cap asset for the past 12 years. However, Bitcoin is considered more of a store of value than digital cash these days, and Salter believes that this shift in perceptions could bring complications:

“A few years ago it was possible to store and transfer $ 1 efficiently, as tx fees are effectively zero. Currently, sending a transaction can easily cost $ 15, so it is no longer sensible to transfer $ 1. If this trend continues because of increased use of BTC and higher BTC prices, it will be unreasonable to transfer value in ordinary quantities and will only be an effective store of value for very large quantities. ”

“That’s why I think 2nd Tier solutions are a necessity not only for using BTC as a currency but also for the long-term functionality of BTC as a store of value,” added Salter. Industry players have worked on tier two rating solutions, such as Lightning Network, in an effort to facilitate small transaction capabilities.

Salter itself uses Lightning Network solutions for its own Bitcoin efforts. “I personally upgraded my personal phone wallet to a lightning only (Phoenix) wallet, so that even in these crazy times I can pay with coins quickly and cheaply,” he said. “For anyone who tried using lightning two years ago and found it confusing, I strongly suggest you give it a try now that it’s much more established and user-friendly to use.”

Bitcoin’s grading debate was the focus of discussion in 2017 and 2018. In September 2020, MicroStrategy said it faced no major issues during one of its BTC accruals. The company purchased 38,250 BTC using a combination of off-chain and on-chain routes.