As MicroStrategy’s Chief Executive Officer, Michael Saylor describes what he considers to be the long-term application of fundamental crypto currencies like the popular Bitcoin (BTC).
The wealthy investor, Michael Saylor, in a conversation with the Lex Friedman YouTube channel, discusses how the construction of layer-1 blockchains defines their eventual function, which involves speed and security, among other things.
Is Bitcoin Layer-1 The Key To Revolutionary Breakthrough
Considering Bitcoin’s layer-1, which is the property settlement layer, we’ll be doing 350,000 transactions or less each day if we keep things as simple as possible. The bandwidth available on the layer-1 network is 100 million exchanges per year. It would be a great layer for transferring a billion US dollars from one point to another while maintaining the highest level of security possible.
Both of the following are the responsibilities of layer-1: One thing is that I’d like to transport a significant sum of money via space in a secure manner. With layer-1, I can exchange any quantity of Bitcoin for dollars in a couple of minutes.
The second most critical characteristic of layer-1 is that I require the money to last indefinitely. I require money that is both indestructible and eternal. As a result, the more difficult technique is not to transfer a billion dollars from here to Tokyo. A billion dollars must be moved from here to the year 2140, and that is the difficult part. That is the problem we are attempting to fix with layer-1.
Granite would be the most accurate real-world analogy in New York City. You’re looking for the smallest distance of bedrock, to be precise. What is the length of time it has been there? It’s like millions of years in the making. What is your preferred speed for it to move? You don’t have any. Its ability to remain stationary is, in fact, the single most crucial characteristic. The amount of deflection in a hundred years is too great for the system. You might not want it if it deviates an inch and a century at the same time.
As a result, layer-1 of Bitcoin serves as a foundation upon which you can place your trust. What is the maximum amount of weight you can put on it? Up to a trillion dollars and it goes on and on.
On the subject of Bitcoin’s invention, the MicroStrategy CEO or founder continues to emphasize its historical relevance.
This revolutionary breakthrough, which can be achieved for the first time by constructing a $100 trillion dollar layer-1 that would last for a hundred years, is indeed a revolutionary breakthrough.
Because it is ethical and that it is also a common property, available worldwide, and unrestricted. It’s quite unlikely that this will occur. People had attempted this 50 times before, and they had all been unsuccessful. They tried 15,000 times after that, and they’ve all been unsuccessful in some way or another.
Ninety-eight percent have failed, and a few have been slightly more productive, but overall , this is an astonishing achievement.”
Bitcoin Is One Of Man’s Vital Asset To Be Created
The Bitcoin cryptocurrency, according to Saylor, continues to be lauded while simultaneously being distinguished from many other sorts of virtual currencies, which he claims are securities rather than true property.
“Bitcoin is a miraculous currency that represents true innovation. In a sense, it is peculiar because it symbolizes the first time in the history of man that we have succeeded in creating a digital property that can be adequately comprehended by the public.
It’s simple to build something digitally these days. Every coupon and some other things, they’re all digital something, but they’re all securities, according to the Federal Reserve.
Stocks and bonds are both types of securities. You are, in essence, transferring a security or an IOU when you transfer money through Paypal or Apple Pay. It is therefore vital to understand how to transmit a bearer contract with final agreement in the internet domain or in virtual worlds, and everyone in the cryptocurrency world is capable of doing so.
All cryptocurrencies are capable of doing so, but what they are unable to do, and what 99 percent of them fail to do, is act as property. “They are financial assets.”