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

[Mayorsage]

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?

[Crypto_lion]

Bitcoin has always been the king, no doubt about that. But now, BTC backed finance, lending, stablecoins, and yield, is changing the game. On one side, it gives BTC more utility without selling it, which is great for holders. On the other, adding too many layers might just make things complicated. Avalon Labs (AVL) is pushing this idea forward, and with their listing on BingX, there’s a chance to dive in with 40,000 AVL up for grabs + a 30 USDT bonus for new futures traders, worth checking out. But what do you think? Is this the future of Bitcoin.

[yhiaali3]

In my opinion, we are complicating things, we are creating more problems and complications with each improvement attempt, so in my opinion it is better to keep things as they are and not add more complications.

For example, the Bitcoin Lightning Network solutions that were created to avoid high fees and speed up transactions, what has happened so far? These solutions seemed complicated to many users who preferred to stay on the main network, and the Bitcoin Lightning Network was not very popular.

I believe that the same fate will face financial lending projects backed by Bitcoin.

[Mia Chloe]

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....

One of the things that matters the most in any project is their investors and how much liquidity they put in. Basically a project with a lot of core investors who are not looking to make quick profit from that network will definitely make the network a long term one.
On the other hand if they pull out too much from the network or they all have relatively the same drive to make it quick off the network it would be difficult too for growth to happen.

[robelneo]

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?

We are trying to improve on something that needs nothing to improve. I like Bitcoin as it is; once they try to add something to improve it, we just end up realizing that Bitcoin on its original core is still the best.
They will keep on trying to add improvement, and we will always see that these are all useless.

[Zed0X]

Building on top just makes things worse for the main layer (L1). No need for that 'innovation', they can keep that to themselves or just build a new one using similar tech. Remember the surge of those projects under omni layer or those called brc-20? They just spammed the network which made it hard to send btc even using transaction fee above 50 sats.

[TomPluz]

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.

[taufik123]

Building on top just makes things worse for the main layer (L1). No need for that 'innovation', they can keep that to themselves or just build a new one using similar tech. Remember the surge of those projects under omni layer or those called brc-20? They just spammed the network which made it hard to send btc even using transaction fee above 50 sats.

The latest Rune Protocol and Ordinal that make the Bitcoin network increasingly burdened with the surge in transactions that occur.
In the end, it jams the Bitcoin network and makes fees very expensive.

I felt the impact and stuck in a long transaction with a fee that could even be 20x the usual fee.
Bitcoin layer 2 and the like really put a strain on the Bitcoin network

[Mayorsage]

In my opinion, we are complicating things, we are creating more problems and complications with each improvement attempt, so in my opinion it is better to keep things as they are and not add more complications.

For example, the Bitcoin Lightning Network solutions that were created to avoid high fees and speed up transactions, what has happened so far? These solutions seemed complicated to many users who preferred to stay on the main network, and the Bitcoin Lightning Network was not very popular.

I believe that the same fate will face financial lending projects backed by Bitcoin.

Fair take. No doubt, adding layers to Bitcoin has always been tricky, Lightning is a great example of how adoption isn’t just about tech but also user willingness.

That said, ignoring BTC-backed finance entirely feels like leaving money on the table. With $2B TVL already locked in, clearly, there’s demand. The real question is can these platforms make it seamless enough that people actually use them? If they do, we might be looking at something bigger than just another DeFi experiment.

[Mayorsage]

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....

One of the things that matters the most in any project is their investors and how much liquidity they put in. Basically a project with a lot of core investors who are not looking to make quick profit from that network will definitely make the network a long term one.
On the other hand if they pull out too much from the network or they all have relatively the same drive to make it quick off the network it would be difficult too for growth to happen.

Exactly. Long-term conviction from core investors makes all the difference. Projects with real backing and deep liquidity tend to survive cycles, while hype-driven ones fade fast.

$AVL sitting at $2B TVL shows there’s real weight behind it, not just a quick cash grab. But the real test is whether that liquidity stays and keeps growing. If it does, BTC-backed finance might not just be a trend, but a real shift.

[Mayorsage]

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.

Well said. Bitcoin’s dominance isn’t going anywhere, but that doesn’t mean it should just stay static while everything else evolves.

BTC-backed finance isn’t about ‘fixing’ Bitcoin, it’s about expanding what it can do without compromising what makes it great. The key is making it simple enough for real adoption. If done right, it’s less about adding complexity and more about unlocking Bitcoin’s full potential.

[SmartGold01]

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.

From my little knowledge Bitcoin has been in existence for about 14-15 years if I am not mistakenly which automatically makes Bitcoin the major key player in the crypto currency space and for sure we can't in any assumed that other coin or newer projects would have to dominant Bitcoin for any reason. We can say, other projects are just being tapped from Bitcoin and whatever development they are trying to implement to the space is originally from Bitcoin which cannot be that valuable and regarded more than Bitcoin since Bitcoin has remained the king there couldn't be any competition to dominate Bitcoin so quickly.

[enwi]

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.

From my little knowledge Bitcoin has been in existence for about 14-15 years if I am not mistakenly which automatically makes Bitcoin the major key player in the crypto currency space and for sure we can't in any assumed that other coin or newer projects would have to dominant Bitcoin for any reason. We can say, other projects are just being tapped from Bitcoin and whatever development they are trying to implement to the space is originally from Bitcoin which cannot be that valuable and regarded more than Bitcoin since Bitcoin has remained the king there couldn't be any competition to dominate Bitcoin so quickly.

Yes, Bitcoin has been the most dominant cryptocurrency in the sphere since its creation and that’s for a reason. It has remained recognised as the gold standard proving that growing trust as well as adoption makes the offering more valuable when others are becoming difficult to come by. It is easy to observe that the further advancements that occurred in the crypto industry all have their roots in the idea that was implemented by Bitcoin. There is nothing that can fill the post that has been established for many years in a particular organisation. This alone has demonstrated that bitcoin is not simply a facet of a hot craze that can be easily disposed of because it has definitely shown the capability to stand firm against such threats.

[tequilla_sunset]

Well said. Bitcoin’s dominance isn’t going anywhere, but that doesn’t mean it should just stay static while everything else evolves.

BTC-backed finance isn’t about ‘fixing’ Bitcoin, it’s about expanding what it can do without compromising what makes it great. The key is making it simple enough for real adoption. If done right, it’s less about adding complexity and more about unlocking Bitcoin’s full potential.

BTC's potential lies in adoption itself.
Ones everybody will undersrtand that and keep using BTC in their capabilities, it all is going to click.

[bitterguy28]

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