Ripple CTO David Schwartz has a way of breaking down complex issues into simple explanations. Recently, in a lively discussion on X, he explained what makes Bitcoin (BTC) truly exceptional. At the heart of his view are two ideas that are closely connected: the historical significance of Bitcoin and its economic value.
In the sea of debate over blockchain’s technical differences, Schwartz’s stance stands out. He says it is not Bitcoin’s technical superiority that makes it special. After all, the features of any blockchain – like scalability, low fees and energy efficiency – can be easily transferred. What makes Bitcoin special is that it has a lot of history, and it is the top proof-of-work chain in terms of economic impact.
This view came up when he was talking about how Bitcoin SV (BSV) compares. BSV is all about its own advantages – unbounded scalability, near-zero transaction fees and minimal energy usage. But Schwartz stood his ground.
These features are impressive on paper, but they do not tell the whole story of what makes a PoW chain valuable. If people do not have the same level of trust in it and do not use it as much, these technical benefits do not matter as much.
I agree that the two best things about bitcoin are its history and its value.
— David “JoelKatz” Schwartz (@JoelKatz) December 11, 2024
The discussion participants also brought up some of the issues with Bitcoin, like its scalability and energy usage. Schwartz acknowledged these problems but also pointed out that even though there are debates about Bitcoin’s role as a payment system, it is still a reliable way to store value and a widely accepted financial asset.
This mix of strengths and weaknesses is what makes Bitcoin special.
Craig Wright is back?
The discussion was born after the dispute between Schwartz and allegedly Craig Wright, who used an X account under the nickname ‘S Tominaga’. In this conversation – if it is really Wright, which is indirectly proven by the fact that Schwartz replied to him – the Australian businessman once again claimed that he is the inventor of Bitcoin, and the fact that he lost the legal battle with COPA does not prove anything.
Schwartz’s response avoided delving into these broader claims, instead focusing on Wright’s repeated legal actions. Schwartz emphasized that his concern lay in preventing the abuse of the legal system to target others, rather than silencing anyone’s views.
