Ripple CTO David Schwartz argues that Bitcoin's true value lies in its role as a secure, trust-minimized settlement layer, rather than simply as a currency . In his view, Bitcoin's main strength isn't in hosting complex smart contracts or in fast payments, but in offering a secure settlement layer that other networks can rely on .
Schwartz pointed out that Bitcoin's early-mover advantage and proof-of-work design help secure its long-term dominance in the digital asset ecosystem . Even if the vast majority of its transactions don't take place on Bitcoin's layer one, its solid layer one and early start will secure it a position as a currency of choice in an evolving digital asset ecosystem .
Schwartz described Bitcoin as a base for future financial structures . The utility of Bitcoin as a high-security settlement layer, not merely a chain of high utility, might decide the longevity of Bitcoin . He admitted that very few real-world problems are solved by most cryptocurrency platforms currently .
The growing popularity of Bitcoin on other chains and platforms underscores that its utility extends far beyond the main chain . This is similar to XRP being used on an EVM-compatible sidechain, where it retains currency utility even if not transacted directly on the XRP Ledger .
Bitcoin's move into settlement infrastructure isn't just a technical upgrade—it's a paradigm shift . Block's Bitkey integration, with its focus on security and accessibility, positions Bitcoin as a foundational technology for global commerce .
While Bitcoin's base layer provides unparalleled security and decentralization, its block times and throughput limitations mean it is not natively built for instant settlement . This is where the Lightning Network comes in . The Lightning Network allows peer-to-peer transactions that settle instantly without intermediaries .
According to a study, in early 2021 Bitcoin settled between $2,333 and $7,555 for each Dollar spent on energy .