Bitcoin needs to adjust speed just like driving ETFs.

Paul Sztork, a proponent of Bitcoin Drivechain, believes that the growing mainstream acceptance of BTC will require infrastructure and functionality.

In a wide-ranging interview with Cointelegraph, Sztorc touched on the pros and cons of Bitcoin (BTC) entering into institutional funds in the United States and the long-term implications. The environment.

“It's a sign of health, a sign of validation. Bitcoin is definitely more recognizable, and the name is getting out there. It is also a result of certain types of funds that have to flow through ETFs,” Sztorc said.

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The co-founder of LayerTwo Labs described Bitcoin ETFs as “the inevitable consequence of age,” highlighting that the customers of BTC-backed investment products are different from everyday retail investors and hardcore bitcoiners.

“ETFs are inherently custodial, incorporated into government and government reporting instruments. However, someone who relies on ETFs is unlikely to buy any bitcoins themselves.

Sztorc admits that the hype surrounding Bitcoin ETFs can serve as an entry point for investors and individuals who have yet to learn about BTC. At the same time, the focus on their impact may create an undue focus on Bitcoin's value rather than its underlying metrics and performance.

“Bad things? ETFs continue people's obsession with value. The CEO should never talk about the stock price, he should focus on what drives him. The quality of the product and how happy his employees are,” Sztorc added.

Bitcoin scaling is still a work in progress.

LayerTwo Labs has been developing Drivechains for over four years. Bitcoin Improvement Proposals (BIPs) 300 and 301 outline how the Bitcoin network can create, delete, send, and receive BTC from layer-2 blockchains, commonly called sidechains.

Sztorc, who wrote BIP-300, is a proponent of the functionality offered by Drivechains and has spoken extensively about the two BIP complexities at several Bitcoin conferences in recent years.

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As more liquidity flows into the Bitcoin ecosystem through major adoption-driving events such as the approval of Bitcoin ETFs, the network is likely to experience higher transaction volumes. It's a point Sztorc emphasizes, citing the statement of Bitcoin's alleged creator.

“Satoshi Nakamoto used that to say that in 20 years there will be no high transaction volume or no volume. Big blockers Satoshi was a big blocker; whatever it is, I'm absolutely sure he's right,” Sztorc said.

“A billion people using another blockchain protocol and there's no way bitcoin will survive.”

While the Lightning Network has been influential in providing the Bitcoin network with low fees and a means to process high-volume transactions, Sztorc states that the ecosystem needs more work to protect against altcoin competition, hard fork campaigns, and extension block campaigns.

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“BIP-300 is about competition, that's what we want. Different software developers compete, and it solves the last part that people ignore. Sidechains allow people to play whatever game they want, while non-opt-in bitcoiners don't care what the sidechain does, Sztorc said.

As previously reported by Cointelegraph, BIPs have played a critical role in improving the functionality of the Bitcoin protocol and laying the foundation for soft forks in developing innovations such as the Lightning Network.

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