Bitcoin’s Role in Reshaping Global Finance Explored in New Interview
A segment from the Supply Shock newsletter delves into the interview between Pete Rizzo, host of “The Bitcoin Historian” podcast, and Peter Todd, a prominent Bitcoin developer. Todd, who worked on Bitcoin Core dating back to its early days and has been involved with projects like RGB and Zcash, discusses the prevailing mindset within the Bitcoin community.
Todd emphasizes a pragmatic approach, viewing Bitcoin as a tool delivering practical results rather than adhering strictly to a theoretical future state of “hyperbitcoinization.” This practicality conflicts with its long-term vision as a global settlement layer.
Bitcoin vs. Alternative Crypto Applications
While acknowledging Polymarket’s success as a decentralized prediction market using off-chain logic, Todd stresses that its very nature is centralized, particularly regarding transaction routing and security engineering. He suggests building on Bitcoin, while simpler ideologically, presents significant engineering hurdles.
“The amount of money bet on Trump is an example [of Polymarket’s success],” Todd notes, contrasting its reality with the community’s trustless ideals. Running a specific business often necessitates centralization.
Lightning Dominance for Peer-to-Peer Payments
Regarding Bitcoin’s core function, peer-to-peer payments, Todd asserts Lightning Network transactions are now the default mode. The on-chain path has become practically dead for most point-of-sale transactions due to clear fee and liquidity advantages, rendering them “pointless.”
Tether’s Ubiquity in Developing Economies
The piece also contrasts Bitcoin simplicity with the widespread adoption of stablecoins like Tether (USDT) on other networks. With an estimated 76% market share, USDT, stripped of Bitcoin’s branding and technical baggage, provides stability crucial for everyday transactions in volatile environments like Macedonia and even remote purchases in the Ukraine described by Rizzo.
Todd concludes that while Bitcoin represents a “global alternative monetary system,” its stark simplicity fosters a practical instinct focused on solving immediate problems effectively. These “hardboiled sensibilities” are less geared towards realizing its endgame of global trustless settlement but more about everyday value transfer and practical utility today.
