Bitcoin Isn’t Broken~So Why Are We Trying to Fix It?

[KincaidT]

I can totally see both sides of this bitcoin backed finance thing. On one hand, I think it's pretty cool, it could make btc even more useful by letting people borrow or trade with it easier like giving it more juice to move around. I mean, who wouldn't want new ways to play with their bitcoin right? But then I start worrying because it's not all sunshine, it adds some tricky stuff too. Like what if the people running it mess up or the government steps in with a bunch of rules? That could throw a wrench in things. For me, it'd be awesome if these setups keep things simple and stick to what bitcoin's all about, no middleman, no funny business. I've got my eye on stuff like Avalon Labs to see if they can pull it off without losing that bitcoin vibe. I'm curious to watch how it shakes out, could be a big win if they get it right!

[omori]

I’ve also been reading up on some platforms experimenting with this concept, like Avalon Labs, which is building out a BTC-backed financial layer, but I’m still torn. Are we actually improving Bitcoin’s utility, or just overcomplicating things?

So what do you guys think? Are BTC-backed ecosystems a real path forward, or are we just complicating things for the sake of it?

what you mentioned about ai and nft are not part of bitcoin they are not being developed for the sake of improving bitcoin

a lot of these projects are not trying to develop bitcoin but instead trying to replace bitcoin because they want to prove that like you said their project is the next big thing

the layers in bitcoin are the ones hoping to develop bitcoin further by increasing its scalability and more

Agreed.
We all know where L2s would lead if there are too many of them, and the main layer just dies down due to the problems it has.

[MarcuB]

I’ve been in this space long enough to see narratives come and go. First, it was ICOs, then DeFi, then NFTs, then AI tokens. each one claiming to be the next big thing. But one thing that’s always stuck with me is Bitcoin’s dominance, No matter what happens, BTC remains king.

Lately, I’ve been looking into Bitcoin-backed finance lending, stablecoins, and yield backed by BTC. Some say it’s the next evolution, others think it’s just adding unnecessary complexity to something that already works.

I’ve also been reading up on some platforms experimenting with this concept, like Avalon Labs, which is building out a BTC-backed financial layer, but I’m still torn. Are we actually improving Bitcoin’s utility, or just overcomplicating things?

So what do you guys think? Are BTC-backed ecosystems a real path forward, or are we just complicating things for the sake of it?

Bitcoin's been solid forever while other stuff pops up and fades. Using BTC to back money stuff feels like a cool next move, giving it more jobs without learning on those other coins. But piling on extra steps can get tricky especially with keeping things safe and free from control. I'm wondering if these ideas really make bitcoin better or just add middlemen we don't need.

[Crwth]

I don't think it should be seen as overcomplicated; it's an upgrade or a "fitting" to a particular industry in the market. You would notice that not everything is a one-size-fits-all type of thing, and different finance systems would adapt to the current things, and not everything is BTC applicable or something.

People would always continue to dinnovateoontheir own because they want to earn for themselves. It's always going to be like that.

[Themepen]

Nothing can beat the dominance of Bitcoin and this can be so true in the next decade for sure...but there is a need to introduce useful innovations using Bitcoin as I believe that stagnancy is an enemy we should not allow to come in especially for something considered to be a game-changer like Bitcoin. Now, this does not mean that we should really complicate things unnecessarily...for sure technology can really be complicated but at the end of they day developers should make things less complicated and they should be practical otherwise the market may not be reacting to what they are offering so positively. These new offering of innovations does not mean that Bitcoin is broken...it means that Bitcoin has to grow otherwise it would be left behind by competitors all ready to take advantage of perceived needs and clear weaknesses.

Bitcoin is best and need for new ideas. While Bitcoin is likely to remain leader in cryptocurrency world for now it is very important to keep introducing new and useful innovations to help it keep growing and stay relevant. Not changing or improving can hold Bitcoin back and it is crucial that developers focus on creating solutions that are practical and easy to use building on Bitcoin strengths.

And yes this does not mean that Bitcoin is weak or broken but rather that it needs to change and adapt to changing needs of market and users. With embracing new ideas and staying ahead Bitcoin can keep its position as leader in cryptocurrency world and avoid being surpassed by others.

[Findingnemo]

Bitcoin network isn't perfect but it's the most decentralised network, so the development is indeed for the mass scale adoption if it ever happens. L2 solution is also part of the development that enabled the micro payments possible with cheaper and no waiting time.

However the Bitcoin backed projects are not related to Bitcoin at all, it's just another project that has its own reason.

[Stuart]

I’ve been in this space long enough to see narratives come and go. First, it was ICOs, then DeFi, then NFTs, then AI tokens. each one claiming to be the next big thing. But one thing that’s always stuck with me is Bitcoin’s dominance, No matter what happens, BTC remains king.

Lately, I’ve been looking into Bitcoin-backed finance lending, stablecoins, and yield backed by BTC. Some say it’s the next evolution, others think it’s just adding unnecessary complexity to something that already works.

I’ve also been reading up on some platforms experimenting with this concept, like Avalon Labs, which is building out a BTC-backed financial layer, but I’m still torn. Are we actually improving Bitcoin’s utility, or just overcomplicating things?

So what do you guys think? Are BTC-backed ecosystems a real path forward, or are we just complicating things for the sake of it?

The layer 2 (L2) projects are different project from BTC itself, they are projects on their own, only working with BTC network to enhance scalability, reduce cost of transactions and enhance scalability of the project. BTC with no doubt remains the King of crypto currencies. I will say that the Layer 2 projects are part of the adoption of BTC use and with that it is a path way forward for BTC.

We know that the mass adoption and use of BTC is crucial, so the L2 projects are developing on the BTC Network for their own projects, I don't see it as any form of complication to the community or industry at large.

[omori]

Bitcoin network isn't perfect but it's the most decentralised network, so the development is indeed for the mass scale adoption if it ever happens. L2 solution is also part of the development that enabled the micro payments possible with cheaper and no waiting time.

However the Bitcoin-backed projects are not related to Bitcoin at all, it's just another project that has its own reason.

Yeah, such projects trying to do their own thing - Bitcoin itself, the main layer, should be adapted to the needs of the people and time, because currently, BTC is the ultimate store of value.

[0t3p0t]

The thing is, most just wanted profits that is why new narratives will exist and investors create hype so things will become brighter even in a short period of time. I agree that Bitcoin isn't that perfect but we are used to it we can not deny that especially the fee.

[omori]

The thing is, most just wanted profits that is why new narratives will exist and investors create hype so things will become brighter even in a short period of time. I agree that Bitcoin isn't that perfect but we are used to it we can not deny that especially the fee.

BTC is stable in a way that it will definitely grow with time and become more scarce.
That's why we know why we shouldn't worry that much.