Bitcoin’s Potential to Skyrocket by Emulating Ethereum’s Approach

Key Points

• Bitcoin (BTC) seeks inspiration from Ethereum (ETH) to foster growth.
• Embracing universal standards and interoperability could enhance Bitcoin's ecosystem.

Bitcoin's Growth Potential

Digital assets are now utilized for revenue generation and yield, primarily through Ethereum's multi-token, multi-chain landscape. Bitcoin, with its own layer-2s, native tokens, NFTs, and DeFi protocols, possesses the potential for significant growth in active users, TVL, and active wallets.

By incorporating features from Ethereum, Bitcoin can mirror its growth seen in 2017 and 2020. Interoperability is crucial, as Ethereum's success stems partly from universal standards. Bitcoin, however, lacks a consistent approach to token and inscription standards.

Interoperability and Universal Standards

Bitcoin's aspiration to become a hub for DeFi, NFTs, and RWAs requires universal standards that facilitate seamless value transfer between chains. Collaboration among Bitcoin developers could exponentially expand its ecosystem across key metrics.

Comparison with Ethereum

Ethereum's TVL of $65 billion far exceeds Bitcoin's $1.15 billion TVL. However, Bitcoin's TVL mirrors Ethereum's level four years ago, prior to the DeFi surge.

The current growth of Bitcoin assets resembles the rise of Ethereum tokens during the ICO craze in 2016.

In 2020, Ethereum revolutionized itself with DeFi and became the preferred network for NFTs.

BRC-20 tokens, once dismissed, have experienced a surge in activity, with market cap exceeding $2 trillion.

Inscriptions on the Bitcoin blockchain have doubled since October.

Conclusion

Bitcoin developers can draw lessons from Ethereum's innovations that have driven its growth. By adopting universal standards and interoperability, Bitcoin can unlock its full potential and nurture a thriving ecosystem.