Bitcoin’s Future: Key Takeaways from the Emergence Panel

An Emergence panel hosted by M Group’s Kevin McGrath earlier this month featured Stacks founder Muneeb Ali and Brendon Sedo, an initial contributor to Bitcoin scaling chain Core. The panel discussed the future of Bitcoin at length with a packed audience in Prague.

Biggest Misconceptions about Bitcoin’s Future

The panel’s first point of discussion centered around the biggest misconceptions surrounding Bitcoin’s future.

Muneeb Ali claimed that the general consensus in the blockchain and cryptocurrency industry has been that Bitcoin is an old chain with limited utility. This notion was reflected in the development community, but only recently have developers begun to realize the potential of building on Bitcoin, challenges aside. Ali stated, “Developers are coming back to the mothership,” emphasizing that Bitcoin Layer 2s and sidechains will significantly impact its future. He argued that “Bitcoin needs L2s more than Ethereum because Ethereum is programmable at the base layer.”

Brendon Sedo disagreed with the idea that Bitcoin serves only as a store of value, highlighting a latent demand for more functionality. He observed that many people want to utilize their bitcoin for activities such as collateralization, borrowing, and yielding returns.

Learning from Other Blockchains

Ali recalled a former belief that successful experiments from smaller chains would eventually benefit Bitcoin. Although this took time, he noted that Ethereum has contributed over five years of research and development, allowing Bitcoin developers to bypass redundant discoveries.

Sedo added that there is increasing research around trustless interoperability with other chains, presenting significant opportunities, though its future remains uncertain.

The Potential of a US Strategic Bitcoin Reserve

The panelists unanimously agreed that establishing a strategic Bitcoin reserve in the United States would be a positive development. Sedo described it as a “very bullish and good thing,” aligning with long-discussed game theory scenarios in the Bitcoin community.

Ali provided a smaller-scale argument for its bullish implications, noting that large VC funds and endowments in emerging sectors eventually feel compelled to participate. He analogized this to nation-states; if the U.S. adopts a strategic Bitcoin reserve, it may pressure other nations to respond.

While they refrained from speculating which nation-state would follow if the U.S. moves forward, Ali pointed out that significant changes often take longer than anticipated but can accelerate unexpectedly.