Stacks’ co-founder believes layer 2 will drive adoption for 2nd phase of Bitcoin

He pointed out the low percentage of capital currently deployed in the market because investors don’t want to spend Layer 1 Bitcoin, seeing it as an indicator of the nascent stage of Layer 2 development.

“Depending on the market price of $1.2 trillion in capital, less than 1% of L2s right now are actually deployed. So we are at a very, very early stage and I would like to see that number move to 1%, 5%, 10% at some point.”

Muneeb Ali

Furthermore, Ali addressed the technical and infrastructural hurdles Bitcoin faces, particularly in terms of transaction mechanics. He expressed how the Lightning network did not accomplish what it meant to do and had hope for improvements that would simplify Bitcoin transactions, making them as easy and efficient as modern payment systems.

Ali questioned the possibility of achieving extremely fast and cost-effective Bitcoin transactions on Layer 2 networks, highlighting this as a vital area for development to improve user experience and extend Bitcoin’s appeal.