Will a “BITCOIN 2.0” ever make the current Bitcoin obsolete?

Will a Bitcoin 2.0 ever make the current Bitcoin obsolete? The answer is no. But let's talk about why. There are two big reasons. One is called the blockchain trillemma and the other is understanding the design space that Bitcoin exists within. So let's talk about the blockchain trilmma. The blockchain trilmma is that any decentralized system has to balance security, scalability, and decentralization. And it's called a trilmma because you can only have two out of three. Bitcoin optimized for the two most important aspects which are decentralization and security. And it allows other solutions to scale which is the third element. And so effectively the trade-off Bitcoin made was being the most secure and the most decentralized platform for money which are the two most important things. So in order to try to improve Bitcoin, you can try to improve on the only aspect of Bitcoin that is not fully optimized for, which is throughput. The problem is there's already good solutions like the Bitcoin Lightning network or in the case of something like the Coinbase debit card, it piggybacks on the Visa network or if you're using services like Cash App or PayPal or uh Coinbase or River, they handle a lot of the transaction volume on what's called a layer 2 solution L2, which is they just take it off of or abstract it off of the base chain and uh handle scalability that way, which is way better to do it because you cannot get scalability on the main chain without giving up security and decentralization which again makes it worse money. So as soon as you understand that, you understand any improvement to Bitcoin comes with a tradeoff of either decentralization or security. And because decentralization and security are the two most important aspects of a decentral of a a digital money, I should say. Because decentralization and security are the two most important aspects of a digital money. There is no way to improve on Bitcoin without somehow making it worse on one or both of those vectors. So the first thing, the first reason to understand why there will not be a viable Bitcoin 2.0 that competes with Bitcoin 1.0 know, is because you have to make something worse about digital money in order to try to do that. And you have to give up either security or decentralization somehow. And nobody that wants digital money is willing to give up decentralization or security. And again, you can get scalability through lots of mechanisms like the Bitcoin lightning network and other layer 2 solutions that take a lot of the small, you know, uh, pennies and that sort of thing, transaction volume off of the main chain if you need to, if it needs to scale that way in the future. Right now, the, you know, the Bitcoin network doesn't need that sort of stuff, but in the future, if it does, all of that stuff is fully functional. Uh, next, for the other reason there will not be a Bitcoin 2.0 know is you have to understand the design space that Bitcoin exists within and you have to realize that that it's possible to exist to invent something that is optimal for which any change makes it worse. So, let's say you're trying to you have a shape a shape on a two-dimensional shape and you want that shape. Uh, you decide, okay, I'm going to try to make the perfect, you know, the mo the smoothest shape. So, you try three corners, you try four corners, you try five corners. And as you add additional corners, you realize that an octagon is more smooth around the edges than a, you know, pentagon because there's eight sides instead of six. But at some point you invent a circle. And when you invent a circle, you cannot make the sides of that shape smoother uh or more uniform I should say. You cannot make the sides of a circle more uniform. No matter what you do, you could say okay but let's push one side in or push the other side in. And instead of making it more uniform, you end up with an oval which is actually less uniform. So it is possible with shapes to come up with a perfect shape that meets a certain criteria. So, for example, a circle has the most uniform sides to it uh because it's the same all the way around. A sphere has the most uniform sides to it as well for a three-dimensional uh sort of thing. So, let's assume that you needed a two-dimensional or a three-dimensional uh thing that was completely uniform and that was the op, you know, optimal shape for money as a hypothetical example. Again, you can't improve on a circle or a sphere because that is the only uniform option. So, Bitcoin exists in the same sort of design space where every decision that Satoshi Nakamoto made when he invented Bitcoin, every one of those decisions was optimized for digital scalable currency. And if you change any of those things to try to improve it, you make it worse. So, Bitcoin has a 10-minute block time. It has a 1 megabyte uh block limit. It has uh you know I don't know I could go through like a gazillion different attributes. It uses you know certain cryptographic signatures. It uses the SHA 256 uh hashing algorithm. It does all these sort of things. And when you understand Bitcoin you understand that if you change any of those things you make it worse somehow. So if there was going to be a viable Bitcoin 2.0 there has been 20,000 different attempts to do that. So, over the last 17 years that Bitcoin's been around, tons of people have copied Bitcoin's code and tried to improve on it somehow. There's been Litecoin, there's been Bitcoin Cash, there's been Dogecoin, there's been literally dozens, hundreds, or even thousands of different cryptocurrencies that were all trying to improve on Bitcoin somehow. and they all failed to become a competitor to Bitcoin because every one of them had to make major trade-offs that no one wanted to make as it relates to a digital currency. So all of them had to somehow make money worse uh in order to be uh in order to change something about it. And again, if you make it worse, it doesn't compete with Bitcoin because people use Bitcoin. So if there was going to be a viable alternative, it would have been invented already because people have had 17 years to work on it and it would have to break the blockchain trilmma which nobody has figured out how to do. Uh it's it's not possible to do something like that. It's like trying to find a product that is uh you know fast, cheap and easy or something like that or you know lowpriced economal economical and whatever. Anyway, you just end up with these tri limas you can't break. Or again, you have to you have to invent something in an alternative design space that's just not software. It's not technical. It's again, it has to exist in some holographic alternative reality like a metaverse, like in Spider-Man or something like that. It just you can't invent something in the current physical world that is better than Bitcoin for all of those reasons. So, uh hopefully that helps. I'm here for anything you need. reach out anytime.