Thread by @dr_orlovsky

An analysis which problems #Bitcoin solves as of today, in the order of adoption 🧵

1. instrument of Investment: long-term (5+ yrs) high-risk high-reward investing in censorship-resistant & trustless way: anybody can buy it (=short fiat/gold/assets) as a “forex” market bet

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2. Long-term (5+ yrs) store of value (#SoV) with the same risk profile as gold, but cheaper vaulting and better unconfiscatability (still high chances of loosing due to vault mismanagement).

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#MoE use-cases which are seriously undermined by bitcoin price volatility:

3. Simple payments for unbanked (paying with BTC is simpler than opening account + costs less and sometimes faster if done with LN).
4. International private remittances - frequently simple & cheaper

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#MoE use-cases undermined by both price volatility & poor privacy (they cant’t run LN due to liquidity problems):

5. International capital movements.
6. Dark market deals (benefits from #Bitcoin PoW extreme censorship-resistant properties).

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No 3-4 are better solved by stablecoins. These cases usually do not require censorship resistance, and this leaks users to non-bitcoin ecosystems.

No 5-6 frequently prefer more private alternatives like Monero as MoE - another adoption leak here.

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Potential cases include programability and micropayments, but bitcoin is very poor on the first (leaking users again) and while the second works well with LN, it does not have the market yet.

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#RGB fixes many #Bitcoin adoption issues. First, stable coins can work on LN in bitcoin ecosystem, much cheaper than anywhere else. We’ve for no.3-4 unlocked. Second, we get onchain privacy exceeding Monero - 5-6 unlocked again.

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Finally we have programmability of full smart contracts - but scalable with LN. Again, beating all other smart contract platforms - in scalability, privacy & censorship-resistance.

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#RGB - client-side-validation and LN combined - fixes #Bitcoin, such that now it will be able to fix the rest.