The Decentralization Dilemma
Samson Mow, the former chief strategy officer at a leading blockchain firm, has a clear stance: decentralized finance (DeFi) isn’t going to win the monetary race against Bitcoin. Why? It all boils down to one word: decentralization. Mow argues that many DeFi protocols lack the robust decentralization that Bitcoin boasts, often allowing centralized entities to alter their governance protocols at a moment’s notice.
Bitcoin: The Immutable Backbone of Money
According to Mow, at its core, Bitcoin is designed to be immutable. “If you can change it at will, then you’re no better than a fiat currency governed by the Fed,” he emphasizes. This immutability is what sets Bitcoin apart; once a decision is made on the Bitcoin network, it’s nearly impossible to reverse. This makes Bitcoin a strong candidate for a truly global monetary system.
Building on Bitcoin: Layer 2 Solutions
Despite the rigid nature of Bitcoin’s base layer, innovation is alive and kicking on the Bitcoin blockchain through its layer-2 solutions. Mow is particularly excited about the potential of the Lightning Network, which allows users to perform instant and low-cost transactions. Forget the days of waiting for confirmation; with Lightning, it’s all about speed and efficiency.
Accelerating Hyperbitcoinization
Mow aims to expedite a future where Bitcoin becomes the primary mode of exchange—what he regularly refers to as hyperbitcoinization. Imagine a world where people conduct their transactions in Bitcoin without needing to convert to fiat first. Mow boldly claims that, “Lightning will displace Visa, Mastercard and everything else.” Which makes you wonder—are we ready to say goodbye to our beloved credit cards?
Benefits for Merchants and Consumers
Not only does the Lightning Network aim to create faster transactions, but it also reduces costs for merchants, which can lead to exciting benefits for consumers. Think better prices and streamlined experiences. Who doesn’t love saving money, right?
What’s Next?
As the decentralized finance landscape continues to evolve, Mow’s perspective poses significant questions about the future of money. Can DeFi protocols step up and compete with the established king of cryptocurrencies? Time will tell, but for now, Mow’s advocacy for Bitcoin remains unshakeable.
