Bitcoin ATH doesn’t mean the bullies are right.

Comment by: Jordan, CEO of MetaTope

Bitcoin (BTC) has hit a new all-time high. one more time.

Owners remain happy, though not as enthusiastic as Bitcoin maximalists who preach the technology to the point of arguing that all Web3 technologies should be built solely on Bitcoin.

Leaving aside the technical fact that Bitcoin was not designed to be built, the top view is also fundamentally based on what Bitcoin was designed to do and was built to do. Bitcoin's blockchain, at its core, was created to decentralize finance. Ethereum was designed to be the foundation of decentralized applications and smart contracts.

Take Bitcoin Puppets for example.

People are paying more than $17,000 for pictures allegedly painted by children. They are intentionally stupid and basic but they shouldn't exist. Bitcoin Ordinals, while an innovative and innovative solution to represent data onchain by writing data in single satoshis, are inefficient and clog up the Bitcoin network. Binance's decision to shut down support for Ordinals suggests that while it may appeal to the layperson — or the advanced professional — Ordinals are the new thing.

Bitcoin's high level of trust is influenced by Bitcoin adoption, the development of all blockchain-related technologies, and the broader narrative surrounding the Web3 industry.

Not everything has to be decentralized or onchain. Bitcoin hitting another new all-time high doesn't mean the maximalists are suddenly right about the future of our startup industry.

Blockchain is not right for everything.

A fact that many Web3 developers continue to ignore is that blockchain is not one-size-fits-all. It is not true that every industry will benefit from decentralization, or that the immutable ledger will improve every organizational system.

Some things work perfectly with the technologies we have today, and blockchain should complement that technology rather than directly replace those systems.

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It's also not as simple as pointing to an industry, system or method and saying “blockchain will fix it.” It's not easy to strike the right balance of decentralization or to know when it makes sense to record transactions immutably. If it were, our industry might have more use cases than it does today.

While the trend over the past few years has been to “bridge” Web2 and Web3, we should instead focus on merging the two worlds to take what works from each and have the best user experience possible. It's good to develop and experiment with new things, but it doesn't help when Web3 developers are fighting the corresponding Web2 technologies.

All technologies are on the same spectrum

Another reality is that Web3 developers, especially Bitcoin seniors, believe that all technologies exist on the same spectrum and work together in one way or another.

The Internet still serves as the foundation for everything we do, Web2 technologies will continue to be the primary online infrastructure in the future, and the importance of fiat currency trading will never go away. Even Web1 technologies like static pages and fillable forms are still alive.

Any blockchain system, especially those in finance, must find a way to coexist with other traditional systems that represent the current standard.

People are always involved

Another fundamental fact that escapes some elites is that blockchain technology will always require human administrators and institutions to run the system at least to some degree.

Indeed, if done right, we should be able to create trustless systems that require minimal human input. Those will be as good as the original code itself. At the same time, people still need to be able to intervene when things go wrong. The recent pump.fun disaster is a good example of when people are especially wanted.

You are also confusing the concept of “trust” with “verification”, which is what blockchain does. Records on an immutable ledger allow you to see any history stored on the chain, but that doesn't mean the onchain is trustworthy.

Faith as a concept is more malleable and almost emotional. It stems from things like name, history and community acceptance. Suspension can be the ultimate form of validation, leading to improved trust. Still, implementing the protocol always comes down to creating truly trustless interactions. While the trustless nature and immutable ledger-based validation makes reliance on other people necessary, it does not make it obsolete.

It is more distributed than decentralized.

In any case, blockchains today are more distributed than decentralized, and Bitcoin is a perfect example.

In the year As of July 2024, 1.86% of Bitcoin addresses contain 90% of the total supply.

On a practical level, most people don't even know that their wallet contains a private key to access their tokens rather than the tokens themselves.

Ultimately, blockchain technology depends on the systems it is designed to replace, which amounts to decentralizing the work, not decentralizing the system's processes, rules, and access.

Web3 Builders focuses on building a sustainable, flexible and expansive ecosystem, not relying too much on one or another blockchain at the expense of the wider industry, even if that chain's token exceeds $100,000.

Jordan Haye is the CEO of MetaTope, a 3D-focused Web3 technology company. Jordan attended Loyola Law School and became a licensed California attorney.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.