Current Status of Bitcoin Ecosystem Development

1. Has the Bitcoin ecosystem, including CKB and STX, stalled recently because funds have moved to speculate on the Ethereum ecosystem?

I think the main reason for the stall is not because funds have moved to other ecosystems, but rather because the Bitcoin ecosystem has not yet developed a strong, innovative application ecosystem.

This application ecosystem should not simply mimic the old applications of Ethereum but should consist of new, innovative applications.

Currently, the Bitcoin ecosystem is taking shape, and there are quite a few applications within it. However, most of these applications are essentially imitations of those in the Ethereum ecosystem. This model can initially bring hope and attract funds, but over time, if there is no innovation, funds will gradually lose interest, and attention will fade.

Whether the Bitcoin ecosystem can thrive depends on whether developers in the Bitcoin community can build innovative new applications.

2. How is the AI sector?

I’ve written several articles specifically about the AI sector, sharing my overall views on the sector and opinions on some popular projects within it.

Overall, except for a few projects that are somewhat related to AI, I don’t like most of them.

3. Are there any recommended sections to follow in Farcaster?

I don’t make recommendations, so I won’t recommend any sections.

However, the sections I follow include base, degen, gaming, memes, zk, and zora.

4. Does the release of the AVM white paper by Atomical mean that the Bitcoin network has achieved smart contracts? What do you think of this protocol and the STAMP protocol?

From what I’ve seen, it still has limitations.

Due to the technical limitations of the Bitcoin mainnet, it’s impossible for it to achieve a Turing-complete system that balances security and functionality like Ethereum. I don’t see any breakthroughs in this regard in the short term.

This means that the functions Bitcoin aims to achieve cannot be as perfect as Ethereum’s, and it needs to find an application ecosystem that fits its positioning.

Moreover, I want to emphasize again that the focus of Bitcoin’s ecosystem development should now shift significantly towards applications. If there are no breakthroughs in applications, the ecosystem might miss this rare momentum.

I was very optimistic about the STAMP protocol earlier. Theoretically, its security is better than inscriptions. However, its problem lies in the weak development of its application ecosystem, which is much worse than the inscriptions community. It has missed a great opportunity and momentum, and so far, it has not gained wider attention beyond a niche community of players.

5. What do you think of ONDO?

If I understand correctly, this is a project in the RWA (Real World Asset) sector. I’m not very interested in this sector and haven’t paid much attention to this token.

6. What about Metis?

In terms of market value, this project is not small, but I like it a lot. It’s a unique layer 2 scaling solution.

The main reason is that it is committed to decentralizing the sequencer. I believe this is a crucial step for the long-term and healthy development of Ethereum’s layer 2 systems, and it’s also a key method to benefit and empower tokens. This action is highly beneficial to the ecosystem with no downsides, except for the project’s own small interests.

Currently, apart from Metis, no other well-known layer 2 solutions seem to be taking steps in this direction. Some may talk about it, but there are no real actions.

7. Is there any risk in using USDT for investment?

I’m not sure what “investment” refers to here. If it’s on a centralized exchange, I wouldn’t go for it. If it’s on a lending application on the chain, I think it’s okay.

I never use USDT for large amounts of stablecoin. I simply don’t trust it.