The recent DCentral Miami conference brought together some of the cryptocurrency industry’s brightest minds to exchange ideas.
Speaking with Kitco News anchor David Lin at the event, former Google engineer and current contributor at Serum JHL, discussed the utility of Bitcoin, on top of the best crypto assets for investing among other things.
Discussing what can supplant Bitcoin as a store of value, JHL said that there are many other tokens or projects that have more utility than the flagship digital asset. Which led to the argument whether Bitcoin has no intrinsic value at all because it doesn’t do anything; with some arguing, it has no utility, so should it be priced at zero.
JHL replied :
“It’s an interesting question. I think you know there are things that came before Bitcoin that might be in a similar position like some say gold and those things are obviously very valuable now. So I think that doesn’t necessarily mean the Bitcoin price should be zero.”
Future blockchain will bridge to Bitcoin
The contributor noted as far as transaction speeds and costs go, Bitcoin “will always be one of the fastest to transact and one of the cheapest” since whichever blockchain or group of blockchains wins the race, as those blockchains will likely have some way of bridging Bitcoin to them.
“You can’t say the same thing will be true about any other token. It’s just because Bitcoin is so big and so well adopted now that I think any blockchain that comes about will likely have a big bridge from Bitcoin to that blockchain.”
JHL was asked as an engineer, what characteristics make a project stand out and indicate that it has growth potential for investors.
“We definitely look for long-term sustainability in the protocol making sure that the protocol can generate fees for itself and in that way you know can justify its own price. The best two protocols to look at in this regard are Uniswap and SushiSwap,” he said.
The former Google engineer highlighted there are fees associated with Uniswap; however, those fees are exclusively sent to the Liquidity Provider, and as a result, the Uni token does not earn fees for its holders; instead, the Uni token is used as a governance token.
The Sushi token he pointed out, on the other hand, generates fees, which are distributed to Sushi token holders using the X Sushi staking model.
Watch the full interview: Should the Bitcoin price be $0?