Bitcoin’s Rise: My View From the Trenches

As a long-time observer of Bitcoin and an active participant in the crypto landscape, it's been fascinating to watch its evolution as an asset class.

But the journey hasn't always been easy. And there's still a lot to learn.

Here's what I've discovered along Bitcoin's journey to reaching $100,000 USD.

This article is part of the Chain Reactions series: expert opinions on everything blockchain and crypto.

Bitcoin Used to Be a Longshot

When Bitcoin first emerged, it was largely seen as a speculative experiment. While some questioned its viability, it was not widely dismissed as a scam but rather viewed with curiosity as people tried to understand its underlying technology.

Those with a strong grasp of technology were among the first to recognize its potential.

Initially, discussions about Bitcoin were confined to tech-savvy circles, but as it gained traction, interest began to grow. The first major price surge caught the attention of a broader audience, ushering in an era where Bitcoin became a topic of mainstream conversation. This period also saw the rise of cryptocurrency influencers on platforms like YouTube, which paralleled Bitcoin’s journey.

As Bitcoin’s price increased, so did public interest and speculative investments. While this attention brought growth to the cryptocurrency space, it also attracted bad actors and scams. Notable events, such as the collapse of BitConnect, highlighted the risks of speculative mania within the space.

The Rise of 'Altcoins'

Beyond Bitcoin, other projects like Ethereum emerged, introducing new possibilities in the blockchain world. Ethereum, co-founded by Vitalik Buterin, introduced the concept of smart contracts, creating a foundation for decentralized applications.

Another member of Ethereum’s founding team, Charles Hoskinson, went on to create Cardano, a blockchain project that sought to address some of Ethereum’s limitations. However, Cardano faced challenges with adoption due to the dominance of Ethereum’s Solidity programming language, and its founder often faced public criticism.

Despite these developments, Bitcoin remained at the forefront of the cryptocurrency world. Its journey was marked by cycles of hype and skepticism, with critics often misunderstanding its potential or perceiving it as a threat to established systems. Over time, Bitcoin’s supporters continued to advocate for its role as a decentralized and secure financial asset, despite the volatility in its price.

My Journey With Crypto

My personal journey in the cryptocurrency space has included participation in various projects, some of which succeeded and others that failed. These experiences highlighted the speculative nature of the space but also reinforced the importance of focusing on fundamentals.

One project that captured my attention was led by Richard Schueler (also known as Richard Heart). His insights into markets and his subsequent projects, such as Hex and PulseChain, brought innovation to the space but also attracted controversy, including recent legal challenges by the SEC.

PulseChain, a fork of Ethereum, aimed to improve transaction efficiency by significantly lowering gas fees. Inspired by the ability to leverage appreciating assets as collateral — a strategy long used in traditional finance.

I soon became involved in developing projects on PulseChain. Our team has launched several initiatives, including Liquid Loans (a lending protocol), PulseChainSafe (a multisignature wallet for enhanced security), and Fetch (an on-chain oracle service). We also introduced an anonymous ticketing system for secure and private support interactions.

Amidst these developments, Bitcoin continues to gain mainstream attention, recently surpassing the $100,000 mark — a milestone that underscores its growing adoption. Many are beginning to recognize its potential to transform finance, particularly in areas like collateralized lending and debt management.

So... What Now?

One emerging narrative is the idea of Bitcoin serving as a decentralized reserve asset, much like gold did before the U.S. dollar was decoupled from the gold standard in 1971.

The concept of repricing gold to back the U.S. dollar or using Bitcoin as collateral for debt could address the challenges of undercollateralized debt.

If the U.S. were to acquire significant Bitcoin reserves, it could potentially mitigate its debt burden while driving Bitcoin’s value to new heights. This scenario, while speculative, highlights the growing interplay between Bitcoin and traditional financial systems.

As for our team, we remain focused on building projects that add value to the ecosystem.

For our part, we're continuing to innovate and contribute to the space, staying committed to our mission despite the distractions and criticisms that are part of the industry’s growing pains.