Current Status of Bitcoin Ecosystem Development? | Q&A

1. Has the Bitcoin ecosystem recently cooled down, including CKB, STX, etc., because funds have gone to speculate on the Ethereum ecosystem?

I believe the main reason for the cooling down is not that funds have gone to speculate on other ecosystems, but rather that the Bitcoin ecosystem has not yet developed a strong and uniquely innovative application ecosystem.

This application ecosystem should not be imitative of the old applications on Ethereum but should consist of innovative new applications.

Currently, the Bitcoin ecosystem is actually taking shape, and there are not too few applications within it, but the vast majority are basically imitations of applications from the Ethereum ecosystem. This model can give people hope and attract funds in the initial stages, but over time, if there is no innovation of its own, funds will gradually become weary, and attention will fade.

Whether the Bitcoin ecosystem can thrive still depends on whether the developers in the Bitcoin community can build innovative new applications.

2. How is the AI track?

I have previously written several articles specifically about the AI track, sharing my overall views on this track and insights on some popular projects within it.

Overall, aside from a very few projects that I think are somewhat related to AI, I do not like the vast majority.

3. Are there any recommended sectors to pay attention to in Farcaster?

I wouldn't dare to recommend any sectors; I do not recommend any sectors.

However, the sectors I am paying attention to include base, degen, gaming, memes, zk, and zora.

4. Atomical has released the AVM white paper; does this mean the Bitcoin network has achieved smart contracts? What do you think of this protocol? And what about the STAMP protocol?

I have looked at it briefly, and it still has limitations.

Due to the technical limitations of the main Bitcoin network, it is impossible to achieve a Turing-complete system that balances security and functionality like Ethereum. I do not see any possibility of breakthroughs in this regard in the short term.

This determines that the functions Bitcoin can achieve cannot be as perfect as those of Ethereum; it needs to find an application ecosystem that suits its own positioning.

Additionally, I want to emphasize my point again: the focus of the Bitcoin ecosystem's development should shift significantly towards applications. If there are no breakthroughs in applications moving forward, it may miss this hard-won momentum.

I was very optimistic about the STAMP protocol earlier. Theoretically, its security should be better than inscriptions. However, its problem lies in the poor construction of its application ecosystem, which is far inferior to the inscriptions community. It has already missed a great opportunity and momentum; aside from a few niche players in the community entertaining themselves, this protocol has not gained broader attention up to now.

5. How about ONDO?

If I understand correctly, this is a project in the RWA track. I am not very interested in this track and have not paid much attention to this token.

6. How is Metis?

If we talk about market capitalization, this project is not low, but I really like this project; it is a very unique layer two expansion.

The main reason is that it is committed to decentralizing the sequencer. I believe this is a very important step for the long-term and healthy development of Ethereum's layer two systems, and it is also a crucial means to benefit and empower the token. This move is entirely beneficial to the ecosystem and does no harm; the only impact is on the project's own small interests.

It seems that aside from Metis, none of the other well-known layer two expansions have taken any action in this regard; some merely make empty claims without any actual action.

7. I want to use stablecoins for wealth management; is there any risk with USDT?

I am not quite sure what "wealth management" refers to here. If it is centralized exchanges, I would not go there; if it is lending applications on-chain, I think it is acceptable.

I never use USDT for large amounts of stablecoins; I have never trusted it.