Bitcoin Can't Become A Reserve Asset Without Protocol Changes

Bitcoin Can't Become A Reserve Asset Without Protocol Changes

If you believe in a future where Bitcoin challenges existing international reserve currencies, it makes no sense to oppose changes to its core design. Bitcoin is here to serve a purpose, and given this, the protocol MUST evolve in response to the changes in the environment. History agrees.

First, if you commit to freezing an architectural implementation of the protocol you are erasing one of the core benefits of cryptocurrencies, which is the fact that they are programmable. The fact that Bitcoin is a computer program at its essence, you can change with little cost. This programmability is one of the most attractive points of algorithm-based currencies, as you can adapt to change/new environments at a smaller cost. It makes no sense to forego this benefit. The protocol MUST evolve.

Second, historically, every major international reserve currency was backed by an issuer with a strong legal and control system over all monetary aspects. An issuer whose currency/money provided for enough liquidity and resisted debasement over an extended period of time was seen as attractive to store and settle trades in. Given that geopolitical, social and economic regimes change over time, a successful reserve currency is one that is able to adapt to those changes, while still accommodating for its liquidity and store of value goals. As such, evolution/change of the Bitcoin protocol is strictly necessary for Bitcoin to even have a shot at becoming a significant portion of international settlement, as Bitcoin needs to accommodate for the technology risk in the same manner that government-like issuers historically did via their legal, tax and monetary policy systems.

Given that quantum risk jeopardizes the intended integrity of the existing ledger, it's crucial for the Bitcoin protocol to mitigate that risk an not "just let it happen". This is what a highly trusted issuer would have done.