The digital asset insights firm Chainalysis goes on to analyze how Bitcoin will maintain its dominance. Espexially, with an increasingly marketplace with other crypto contenders.
Furthermore, Chainalysis chief economist Phillip Gradwell explains BTC doesn’t need to adopt smart contracts. Then, even compete with Ethereum (ETH) and Layer-1 crypto assets.
However, Chainalysis chief economist Phillip Gradwell says BTC should target on being a scarce, decentralized and fungible asset.
“Bitcoin can still have a very high long-term value, but it has become clear in the last six…”
“months that it competes for investor demand, and does not always win.”
So, Chainalysis chief economist Phillip Gradwell continues.
“However, I don’t think that BTC should compete on innovative use cases…”
“Bitcoin is highly unlikely to be upgraded to have the functionality of Ethereum and other Layer-1 assets.”
Also, Chainalysis chief economist Phillip Gradwell adds.
“It just isn’t design for that, technologically or philosophically. And such a change would likely…”
“undermine its unique selling point: that it is a scarce fungible asset.”
Furthermore, Chainalysis chief economist Phillip Gradwell notes that the competition is fierce. However, Bitcoin can maintain dominance as a form of capital in Web 3.0 and DeFi applications.
Notably, Chainalysis chief economist Phillip Gradwell says a widely adopted form of Bitcoin. Of course, will contribute to strengthening BTC’s status as the dominant form of crypto capital.
“230,000 Bitcoin is currently wrapped.”
“However, this requires Bitcoin to be deposited with a centralized third party…”
“That is a fine model – millions of Bitcoin are currently held by centralized custodians…”
“But this may prevent the programmatic wrapping of bitcoin that DeFi would likely require.”
Additionally, Chainalysis chief economist Phillip Gradwell says.
“I believe that a decentralized way of wrapping bitcoin is needed…”
“to unlock the use of Bitcoin as high quality capital in DeFi.”
Then, Chainalysis chief economist Phillip Gradwell concludes
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