Recently, TAAL CEO Jerry Chan participated in a discussion on the HardForking YouTube channel. Chan, alongside Lawrence Grinceri, the CEO of Skyhook Capital, and Eli Afram, the CTO of Layer Two Technology, had an insightful discussion about BTC and Bitcoin SV (BSV) economics as they compared and debated the parameters, utility, and future of each network.
Use cases and utility
“[BTC] cannot scale, all the core developers and smart people were saying [BTC] can’t scale because it would lose its decentralization properties,” said Chan, who previously worked at Goldman Sachs and JP Morgan.
With that Wall Street mentality, he began to ask himself, “Well what is the decentralization of everything worth? What is the value in that?” He realized the answer to that question was that the value of a coin or token is anchored to the utility of the coin—to the people who buy it and use it.
The utility in BTC is that it is used by people as a financial instrument; the utility in BSV is that it has the technological infrastructure to fulfill a number of use cases, such as being used in a platform to facilitate micropayments where it only costs a fraction of a cent to record or transfer a byte of data.
“I think BSV will replace BTC because it is has the same properties as BTC but also has utility,” said Chan. Since BTC is primarily used as a speculative financial product, it can only grow to the size of excess capital individuals have to invest in it. But because BSV has technological utility, the size it can grow to is unlimited; enterprises and consumers around the world are buying BSV and putting it to use on a variety of platforms every day.
Chan, Lawrence, and Afram talked about a variety of topics related to the BTC and BSV networks, including value in terms of utility, the longevity of each chain, as well as the future of transaction processing.
Chan also discussed the transaction processing model that will be implemented on BSV in the future, and why it will be more fruitful for digital currency transaction processors compared to one based purely on earning block subsidy.
“Investors that support BSV are smart and see the long term play,” said Chan early on in the interview.
Watch the full interview below to find out why this is the case.
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