Philip Salter, Genesis head of mining operations, is of the view that Bitcoin would need second-layer solutions to be seen as a good store of value.
He said even if the coin can still be regarded as a good store of value now, it still needs such a solution to accommodate mainstream adoption.
“I think Bitcoin is a good store of value regardless of transaction fees,” he said.
Slater, however, noted that the high transaction fee on Bitcoin is posing a challenge since it affects the value that can be transferred. There have been several projections and predictions on Bitcoin even before the Bitcoin fork earlier last year. However, the top cryptocurrency is still waxing strong as is gradually proving naysayers wrong.
Bitcoin transaction price too unreasonable
Up to this point, Bitcoin (BTC) has stood the test of time, as the coin is the crypto with the highest market cap asset for the past decade.
These days, many people even prefer keeping Bitcoin as a store of value than digital cash. But Salter is not ruling out complications that may arise due to change in perceptions.
“Some years ago it was possible to store and transmit $1 efficiently since tx fees were effectively zero,” he stated.
Salter added that those days have gone since some transaction fees can go as high as $15, and it’s not sensible to charge $1 anymore.
If the trend continues and Bitcoin continues to rise in price, transferring value in common amounts will be very difficult, but only when transferring very large amounts.
Second layer solutions will be feasible
Salter said the solution will be vital not only for transactions on BTC but also for the use of the coin as a store of value in the future.
There have been several layer 2 solution projects undertaken by industry players, many of which are still in a developmental phase. Some of the ready projects, such as Lightning Network, are intended primarily to make small BTC transactions more feasible.
Salter says he is one of those that use the Lighting Network solutions to facilitate transactions in small BTC denominations.