Bitcoin’s Core Strength Lies in Settlement, Not Speed or Smart Contracts: Ripple CTO

Summary: Ripple CTO David Schwartz emphasized that Bitcoin’s greatest value may not be in its use as a currency or programmable platform, but as a trust-minimized, highly secure global settlement layer — a role that continues to attract developers and institutions alike.

Secure Settlement Backbone

According to David Schwartz, Bitcoin excels as a secure and resilient settlement layer due to its proof-of-work consensus mechanism. While it lacks the functionality of smart contract platforms and incurs slower transaction times, its robust track record offers peace of mind to institutions seeking security and decentralization.

“It’s simple in design but tough to break,” Schwartz noted, adding that Bitcoin’s long-standing uptime and absence of major protocol failures solidify its role as a trusted base layer. Despite high fees during congestion and 10-minute block intervals, its reliability remains unmatched in the blockchain space.

Layer-Two Growth and Off-Chain Adoption

Bitcoin’s utility is increasingly being extended by layer-two solutions such as the Lightning Network, which facilitates micro-payments, and smart-contract platforms like RSK that anchor to Bitcoin’s security. These developments help offload transactional demand from the base layer while preserving its trust-minimized nature.

The set of actual real-world problems being solved by cryptocurrencies today is really small. But I think the hope for bitcoin is that its solid layer one and early start will secure it a position as a currency of choice in an evolving digital asset ecosystem even if the vast…

— David ‘JoelKatz’ Schwartz (@JoelKatz) July 14, 2025

Schwartz compared this evolution to XRP being used on EVM-compatible sidechains — activity may move off-chain, yet the underlying asset continues to provide utility and security. He maintained that Bitcoin will likely retain its position as a “currency of choice” even as more feature-rich blockchains emerge.

Security Versus Feature Sets

While newer blockchains promise speed and lower transaction costs, Schwartz argued that none match Bitcoin’s operational history and security. He pointed out that many companies still rely on BTC to lock value before bridging to other ecosystems — prioritizing stability over added features.

Market Milestones and Comparisons

Bitcoin recently surged past $123,000, reaching a market capitalization of approximately $2.4 trillion. This places the asset ahead of major tech giants like Amazon, Apple, Microsoft, and NVIDIA — trailing only gold in total valuation among global assets.

Analysts view this milestone as validation of Bitcoin’s continued relevance, driven largely by its security and decentralization. Though volatility remains a concern, its position among the top six assets globally underlines enduring investor interest.

Featured image from Pexels, chart from TradingView