Bitcoin’s evolving narrative makes it anti-fragile

Over the years, Bitcoin has overcome its opponents by frequently reshaping its narrative. Because Bitcoin (Bitcoin) Is multifaceted, and it can quickly change to face new criticism.

We have seen this over the years. For example, Bitcoin has often been criticized by the media for its volatility in the past-many articles have put forward the idea that Bitcoin is too volatile to succeed as a currency. We have not heard much news about Bitcoin fluctuations today, partly because observers have become accustomed to its frequent price fluctuations, but mainly because “Bitcoin people” have revolved around the concept of Bitcoin as an investment, especially The concept of digital gold was combined. They believe that the only reason BTC has experienced such strong price volatility is that it is not yet fully mature enough to weaken such volatile market values, such as gold. Therefore, the prevailing argument surrounding Bitcoin today is that, despite continued volatility, it is a store of value and an inflation hedge.

Recently, Bitcoin has encountered new obstacles, namely environmental, social and governance (ESG) mining, Ransomware with Regulatory reviewThe Bitcoin community quickly turned to solve these problems, and under the surface, the seeds were planted many years ago. The Bitcoin community is so large that its members are now spread across most industries and even politics. As a result, their work spans areas that have received little attention in the past, such as renewable BTC mining.

related: Is Bitcoin a waste of energy?The pros and cons of Bitcoin mining

Therefore, as the current narrative presents new challenges, people’s attention is suddenly drawn to areas where Bitcoiners have been working behind the scenes. Then, the community merged around these to form a new narrative that aims to become the dominant concept of Bitcoin.

ESG narrative

ESG attacks against Bitcoin broke out in the spring of 2021. They usually make the following points:

  • Bitcoin consumes too much energy (more energy than small countries use).
  • Bitcoin mining does not have enough clean energy to provide power.
  • Most Bitcoin mining takes place in countries such as China, which are not particularly known for transparency or ESG friendliness.

Bitcoiners acted almost immediately to resist these ideas. They stated that Bitcoin encourages the use of green energy because it is usually one of the most efficient and cheapest energy sources available for mining. Bitcoin miners using low-cost renewable energy will be able to make more money than miners using more expensive, potentially non-renewable energy. Therefore, over time, the BTC mining industry is moving towards the full use of renewable energy.

related: Green Bitcoin: The impact and importance of energy usage on PoW

They are also eager to support resources and education about how green Bitcoin is already.Research by Investment Manager VanEck and Cambridge Centre for Alternative Finance Established 39% of the total energy consumption of BTC miners comes from renewable energy, and 76% of Bitcoin miners use renewable energy. This makes Bitcoin more environmentally friendly than many other industries-few of them have similarly reviewed the greenness of their energy consumption.

Bitcoiners also made it clear that Bitcoin’s energy consumption is to protect the network, which benefits all network participants. This security helps to ensure that the Bitcoin network will never go offline, which is different from traditional financial networks that have experienced outages and power outages in the past. Therefore, although the absolute value of Bitcoin’s energy consumption is large, the services provided by miners from this energy are net benefits to society. If people are satisfied with the consequences of ignoring the energy needed to run the global financial system, then why should they oppose Bitcoin’s relatively benign energy consumption, which is expected to build a better and open financial system?

related: Ignore the headlines-Bitcoin mining is already greener than you think

We also saw outspoken Bitcoiners, such as Michael Sayler, Unites the Bitcoin community and miners against misunderstandings surrounding the use of Bitcoin energy Establishment of the Bitcoin Mining Committee. Encourage BTC miners to be more transparent and promote their energy sources. This coordination shows that Bitcoiners are united in their efforts to make the network greener.

BTC miners who already use a lot of renewable energy in their operations have also received attention. In addition, with more than 99% of the headlines of Bitfarms, a hydroelectric Bitcoin miner, listed, I expect the wider public will be familiar with the actual situation of BTC mining. In conjunction with the aforementioned actions and the promotion of education, Bitcoiners are revising their ESG narrative. If they succeed—I have no doubt that they will succeed—the potential ESG problem of Bitcoin is unlikely to make headlines in the future.

related: Blockchain and sustainability-more than just electricity

Currency and scale narrative

Bitcoin as a currency has been largely ignored, and attention has turned to BTC as an investment. But in the background, some Bitcoiners are working hard to promote the global adoption of BTC and develop the Lightning Network.

Recent developments in El Salvador-the passage of the “Bitcoin Law” Decree BTC legal currency In the country-it is groundbreaking for cryptocurrency, although it seems to be ubiquitous to many people. When looking closely at this situation, it is clear that Bitcoiners have laid the groundwork a few years ago. Bitcoin Beach is a project seeking to create a sustainable Bitcoin ecosystem in El Salvador, and the project has done a lot of preparations in the country. It seeks to strengthen financial inclusion through the use of Bitcoin, and it is also committed to addressing the claim that Bitcoin is not being used as currency. It succeeded. If countries seeking to adopt BTC as legal tender have a domino effect, then the consequences of global adoption of Bitcoin could be far-reaching.

related: El Salvador’s adoption of Bitcoin may cause it to lose market dominance

In order to solve the argument that Bitcoin is not large enough to be used as currency, many Bitcoiners have been quietly working on building the Lightning Network in the past few years. Although still not perfect, the usage and capacity of the network are growing, showing its prospects as an expansion solution. In general, it receives little attention. I suspect that at some point in the future, the “sudden” success of the scaling solution will once again change the Bitcoin narrative: from investment to currency.

As Bitcoiners work together to expand Bitcoin adoption, Bitcoin is able to maintain its anti-fragility. So far, it has been able to overcome all major obstacles, in large part because Bitcoiners are able to shape its new narrative.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Martin Gasper He is a research analyst at CrossTower, a digital asset capital market company, with a background in basic research and cryptocurrency analysis. Martin was previously a fixed income research analyst at Wells Fargo Securities, where he helped support traders, salespeople, and buyer clients with actionable investment advice. He is passionate about encryption and has been following the field since 2012. Martin has a bachelor’s degree from the University of Colorado and graduated with honors in economics.