Are the Financial Times’ criticism of Bitcoin a reality bomb or a repetition of the hackneyed arguments that major cryptocurrencies are unfit to fulfill the function of money?
The second, faster layer of Bitcoin Blockchain and Bitcoin Hyper aims to change this concept and allow Bitcoin to reach its full potential.
The newspaper relies in its speculations on the elasticity of supply. He claims that Bitcoin cannot act as money because its supply does not decrease when demand falls, but this ignores an important problem in macroeconomics: Bitcoin is not considered inefficient because of the stability of supply, but rather because of its functional sterility; There is no place to run it, no high-speed environment to manage it, and no technical system in which it can act as an intermediary for trade.
For its part, the Bitcoin Hyper project changes this equation by creating a high-throughput environment that allows Bitcoin to be moved at the speed of the Solana Blockchain, and to settle transactions on the underlying Bitcoin Blockchain. Bitcoin0 will not remain idle, as it will run decentralized applications (dApps) and pass through the execution layer of the Solana machine. Virtualization (SVM), so you can use it without sacrificing security.
Additionally, early investors can participate in building this system by purchasing the project’s Bitcoin Hyper, which will be used to pay network operating fees, mortgages, and governance of the entire technical system. Bitcoin Hyper price currently stands at $0.013345, but it will increase again as the next subscription phase enters.
The wave of Bitcoin sales renews the question: Can Bitcoin play the role of money?
Economist Paul Donovan of UBS Global Wealth Management published an opinion piece in the Financial Times that reignited long-standing skepticism about Bitcoin, just as the market suffered one of its biggest setbacks of the year.
Bitcoin’s price has fallen from October highs to the $80,000 region, and the coin has since faced renewed criticism from mainstream financial experts who say it cannot play the role of money. Donovan’s claim essentially states that Bitcoin experienced “900% annual inflation” during its recent 35% price drop, proving that… Fixed supply cannot decrease when demand decreases.
These concerns are based on Bitcoin’s “downside supply inelasticity” and its inability to stabilize as a trading support, due to the lack of ability to reduce supply or tighten financial conditions during periods of downward movement.
Donovan is talking here about the ability of central banks to manage traditional currencies, changing interest rates, withdrawing liquidity and tightening quantities, while Bitcoin completely absorbs fluctuations and leaves users exposed to sudden price swings without policies to mitigate them.
These criticisms have attracted particular attention, in conjunction with investor disappointment with price action in November, as Bitcoin broke several important support levels, withdrawals from exchange-traded funds (ETFs) accelerated, and price volatility increased, while U.S. stocks saw an upward move following the reopening of the U.S. government and renewed macroeconomic optimism.
This divergence also confirms Donovan’s concerns about Bitcoin’s inability to respond to demand shocks, so how can it function as a reliable currency?
This perspective assumes that Bitcoin will remain trapped in the slow, low-throughput first layer dedicated solely to settling transactions, and that demand for the currency is limited to investment flows and store-of-value narratives.
The reviews start to fall apart at this point; The problem with Bitcoin is not its fixed supply, but rather the lack of a scalable environment in which it can evolve. The Bitcoin blockchain was designed to settle impenetrable transactions without taking into account high economic activity, and here is the role of Bitcoin Hyper, which represents the first project aimed at closing this gap which has existed for 16 years.
The Bitcoin Hyper project transforms Bitcoin from a fixed security into an active currency.
Bitcoin Hyper addresses the structural limitations Donovan describes by giving Bitcoin a feature it has lacked since its inception: an execution environment in which it can move freely, at low cost, and at high speed. Instead of performing daily transactions on the underlying Bitcoin blockchain, it moves them to an execution layer that has the speed of the Solana blockchain, but keeps final settlement on the first layer.
The second layer, Bitcoin Hyper, uses a backhaul that reserves Bitcoin on the base layer in exchange for issuing an encapsulated copy of it into its technical system. The latter will represent an intermediary to carry out transactions within applications based on the Solana Virtual Machine (SVM), which means managing the speed of the Solana blockchain while settlement takes place on the secure Bitcoin blockchain.
This project frees Bitcoin from the narrative of a store of value and slow movement, as Wrapped BTC gives it functional use in the decentralized finance (DeFi), gaming, social media and real-life applications sectors, while being backed by a 1:1 ratio of the original Bitcoin currency.
This mechanism also addresses the problem of “lack of flexibility in supply reduction” that Donovan warned about. As new applications are developed and used, the demand for Bitcoin will be linked to its uses rather than macroeconomic effects and speculative movements. The growth of the technical system and the circulation of currency will help create a natural balance that the base layer lacks, meaning that the Bitcoin Hyper project will work to change the speed of the BTC currency instead of its supply, and this is the change that critics of the currency are calling for.
The project that is creating new demand for Bitcoin
The project will give Bitcoin the high-throughput environment it has long lacked, while Bitcoin Hyper will benefit economically from this transformation, as currency transactions encapsulated in the technical system require fees to operate the HYPER coin, making it an essential resource within the second layer to pay fees, secure the network – through mortgages – and determine the future of network development.
At this point, Donovan’s criticisms fall apart, because the stability of currencies comes from maintaining a stable and continuous function-driven demand (not a decrease in supply), and Bitcoin Hyper fills the void that Bitcoin suffers from by giving it the necessary speed, as it transforms it from a fixed security to an active trading capital, which means generating demand for both currencies within the technical system instead of relying on waves of speculation.
Hence the importance of timing, because the feature-based requirement waits for no one. With the beginning of the movement of wrapped currencies in applications, the market will increase the price of Bitcoin Hyper at the same time as it will become a mandatory fee for all transactions.
Early investors will get some of the scarce resources of the future economy class before demand begins to increase significantly.
How to buy Bitcoin Hyper
Bitcoin Hyper’s IPO has raised $28.5 million so far. You can participate by visiting the official Bitcoin Hyper website and purchasing it with Solana-SOL, Ethereum-ETH, Tether-USDT, USD Coin-USDC, and Binance. Coin-BNB), you can also pay with Visa and MasterCard.
Bitcoin Hyper can be deposited into the project’s staking protocol, which currently offers a variable annual yield (APY) of 60%.
Finally, the project team recommends using the Best Wallet-BEST, which is one of the best crypto wallets on the market, as it offers you direct access to Bitcoin Hyper through the “Upcoming Tokens” section, which will facilitate the process of purchasing and tracking your balances and receiving your coins as soon as they become available.
To stay informed of the latest developments of the project, join its community on the Telegram and X platforms.
To visit the official Bitcoin Hyper website, click here
The post Financial Times says Bitcoin can’t play the role of money, and Bitcoin Hyper-HYPER IPO with its second fastest layer raises $28.5 million appeared first on Cryptonews Arabic.