Key Takeaways
- •Bitcoin has a strong long-term outlook but faces challenges with increasing user adoption.
- •Scalability is a significant weakness of the Bitcoin network.
- •Bitcoin Hyper proposes a Layer-2 solution powered by the Solana Virtual Machine (SVM) to address scalability issues.
- •The $HYPER presale is approaching $25 million.
Bitcoin is currently in a somewhat precarious position, and Bitcoin Hyper could be the boost it needs to restore the value of $BTC to early October levels. The $HYPER presale is approaching $25 million, highlighting its potential ahead of the Bitcoin Hyper launch.
Bitcoin is still recovering after the October 10 flash crash, trading around $109K following early October highs of $126K. Although $BTC briefly rallied on October 21 to lift the price above $113K and turn positive for the month, this rally was short-lived.
While it appears that Bitcoin will be able to stay above the key psychological support level of $100K, this period of price activity should serve as a reminder that $BTC is not the perfect cryptocurrency. In fact, several major technological issues with the Bitcoin blockchain are likely to worsen over time.
Ultimately, we expect the number of Bitcoin users to grow as new traders buy the dip. While that's positive for $BTC, it's harmful to the underlying network. Bitcoin is much less capable of scaling with additional transactions compared to Solana or Ethereum, meaning new users will likely clog the network.
This congestion results in slower clearing speeds and higher fees. To remain relevant in the growing Web3 sector, Bitcoin must keep pace with high-performance blockchains. This is where Bitcoin Hyper ($HYPER) aims to make a difference with a Layer-2 solution for Bitcoin based on a Solana Virtual Machine (SVM).
The $HYPER presale is nearing $25 million, making it an opportune moment to explore why this cryptocurrency could be the next 1000x in 2025. This article will delve into why $HYPER has become such a viral presale and what Bitcoin Hyper could achieve for the Bitcoin network.
Could Bitcoin Be Faster?
Several technical limitations of the Bitcoin network prevent it from effectively scaling the number of transactions it can process per second. Transactions are added to the Bitcoin network when a miner records the block containing the transaction on the blockchain, a process that typically takes around ten minutes.
The challenge lies in the fact that only a limited number of transactions can be included in a single block due to its maximum file size. Consequently, the Bitcoin network can only process between 7 to 10 transactions per second (TPS). In contrast, the maximum theoretical TPS for Solana is around 65K.
Without delving into excessive technical detail, traders can opt to pay higher transaction fees to miners to ensure their blocks are prioritized for inclusion in the blockchain. This creates a scenario where, as the Bitcoin network slows down, it devolves into a competitive environment where the highest bidder gets their transactions processed first.
If you are not using the Bitcoin network for time-sensitive payments, you likely won't be significantly impacted. Waiting an hour for a long-term investment to process is not an issue, but it becomes a considerable problem if you are attempting to pay a cashier using Bitcoin.
Ethereum's chief developer, Vitalik Buterin, encapsulated the problem with Bitcoin's approach by introducing the concept of the "Scalability Trilemma." This concept suggests that when designing a decentralized blockchain, one must make trade-offs between security and scalability. Given that security is paramount for the trustworthiness of $BTC, the question remains: what is the solution?
The answer could be Bitcoin Hyper. This project leverages the secure Bitcoin Layer-1 as a foundation for value settlement and constructs a Layer-2 solution on top of it using Solana. This Layer-2 infrastructure is designed to support faster transactions, lower fees, and smart contracts. Let's explore how $HYPER could revolutionize the Bitcoin network.
How does $HYPER solve these issues?
Bitcoin Hyper's Layer-2 solution employs an SVM to expedite Bitcoin's clearing speed by processing multiple transactions concurrently on a temporary ledger. These transactions are then periodically committed back to the Layer-1, finalizing the $BTC trades that occurred off-chain.
By processing these transactions on Layer-2, $BTC can be exchanged between wallets more rapidly, circumventing the congestion on Layer-1 that drives transaction fees higher. Furthermore, the utilization of an SVM provides the advantage of supporting DeFi applications, crypto swaps, and NFTs through smart contract functionality on Layer-2.
To transfer $BTC onto Layer-2, a Canonical Bridge is utilized. Users send their $BTC to the bridge wallet address, which holds the Bitcoin in custody and mints an equivalent amount of wrapped $BTC for the user on Layer-1.
This wrapped $wBTC can then be safely used on dApps and for crypto swaps on Layer-2, with the assurance that the underlying $BTC continues to appreciate over the long term. To exit, users can initiate a withdrawal and burn the amount of $wBTC they wish to release.
Why is $HYPER Set to Rise?
While Bitcoin is currently experiencing underperformance, its long-term outlook remains robust. Investment bank Citi has issued a buy rating for Strategy, characterizing it as an amplification of Bitcoin's performance. Citi anticipates that when Bitcoin performs well, Strategy will see even greater gains, projecting $BTC to reach $181K within twelve months.
Given this positive outlook, it is reasonable to expect that Bitcoin will attract a growing number of users in the coming months. This influx of users is likely to further slow down the network, leading to significantly higher transaction fees and making solutions like Bitcoin Hyper essential for the long-term viability of Bitcoin.
With the $HYPER presale having already reached $24.6 million and steadily approaching the $25 million mark, Bitcoin Hyper is likely to attract considerable attention upon its launch. This interest is understandable, considering the significant utility that $HYPER will unlock on the Bitcoin Hyper network.
Developers will have the capability to reserve certain features exclusively for $HYPER holders. To optimize the experience with dApps on Bitcoin Hyper, holding $HYPER will be necessary. The benefits of owning $HYPER include reduced fees for running dApps or trading cryptocurrencies, in addition to staking rewards.
For those interested in the future development of the Bitcoin Hyper project, holding $HYPER also grants access to the Bitcoin Hyper DAO, enabling participation in voting on network proposals. However, prompt action is advised to acquire $HYPER at its current low price. The token is already priced at $0.013155 during the dynamic presale, and this price is expected to increase.