February 2024 - CFI.co Blog

Bitcoin refuses to upgrade. It’s not its fault, it has a network of thousands of people that must approve an upgrade. But that doesn’t mean it shouldn’t upgrade. It probably should have by now. And the funny thing about it is reports state Bitcoin upgraded because it’s scared of altcoins taking over. That’s surely like a pitbull being scared of a Chihuahua. Well, they’re pretty scary.

Can you imagine an XRP buy being more expensive than a BTC buy? Below, we’ll explore whether Bitcoin’s resistance to upgrade is a positive.

What Does Upgrading Do?

Upgrading makes everything better. And you can’t ignore digital upgrades. Anything outdated is weak and vulnerable.

Cryptocurrency upgrades enhance a network’s capabilities and vulnerabilities. They can be anything from minor tweaks to significant overhauls.

In essence, upgrades are crucial for maintaining a cryptocurrency’s relevance and competitiveness. For Bitcoin, upgrades are meticulously planned, rejected by the network, planned again, and so on. It’s sensible – there’s no rushing, but at what cost? How vulnerable is the Bitcoin network? Attacks aren’t frequent, but upgrades should be.

The Bitcoin Taproot Upgrade

Bitcoin is upgrading. The Taproot upgrade represented a milestone in Bitcoin’s history, it was one of the most significant updates since it started.

This upgrade was not just a technical enhancement. It was a strategic move to make Bitcoin more competitive against rapidly evolving altcoins. Altcoins are threatening Bitcoin.

The upgrade improved transaction privacy and efficiency and made Bitcoin more appealing for broader use cases. Those include smart contracts. However, the careful and slow approach to this upgrade is typical of Bitcoin.

Such significant upgrades, though infrequent, are vital for Bitcoin to remain relevant as newer and more agile cryptocurrencies emerge.

Why Hasn’t It Upgraded Since?

Bitcoin’s cautious approach to upgrades is its community-driven nature. Major changes require a consensus. Consensus amongst that many people isn’t easy to achieve. There’s no government-style left-wing and right-wing.

This slow pace is a supposed protective measure against hasty decisions. However, this also means that Bitcoin might lag in implementing technological advancements quickly.

This conservative approach to development is its strength. It ensures unmatched security and reliability. Its weakness is it may struggle to adapt to new demands and innovations.

Does Bitcoin Have Scaling Problems?

Bitcoin’s scalability issues are a significant concern. The blockchain’s inherent limitations impact its ability to handle large volumes of transactions efficiently. Have you ever been on the Bitcoin network during a slow period? It’s a nightmare.

The network design has a block size limit and a 10-minute block time, restricting speeds. It needs to change.

Although the Lightning Network and SegWit have provided partial solutions by enabling off-chain transactions and increasing block capacity, they are more like temporary fixes.

The Bitcoin community wants long-term solutions, but reaching a consensus for fundamental changes remains a challenge. They’ll probably never reach an agreement. Think of it like crypto political warfare.

What Other Coins Upgrade and Perform Well?

Many altcoins exhibit agility in upgrading and evolving. They outpace Bitcoin in implementing new features and enhancements. Ethereum is a prime example, and Ethereum 2.0 addressed scalability and energy efficiency through a shift from proof-of-work to proof-of-stake.

Other cryptocurrencies like Cardano and Polkadot also frequently upgrade their protocols. They’re doing well. You’ll always see them on top coins to invest in reviews. These continuous upgrades enable these networks to adapt quickly to changing market conditions and technological advancements – and they’re frequently patched. They’re just safer.

This adaptability contrasts with Bitcoin’s more conservative approach. It highlights how diverse cryptocurrencies are.

What Coins Are Performing Well in 2024

Bitcoin (BTC): As the original cryptocurrency, Bitcoin continues to lead the market with a capitalization of around $656 billion. Despite its price fluctuations – soaring to $48,005 in November 2021 and adjusting to around $38,481.
Ethereum (ETH): Ethereum’s market cap is $239 billion. It’s massive. Its price journey, mirroring the volatility pattern, moved from about $8 in April 2016 to approximately $2300 by January 2024. The peaks and troughs of Ethereum’s price underscore the fluctuating nature of the crypto market.
Tether (USDT): With a market cap of $74 billion, Tether is an excellent stablecoin. Its value is more consistent compared to other cryptocurrencies, thanks to the US dollar. Still, despite its intended stability, Tether has seen fluctuations.
Binance Coin (BNB): Starting under $0.10 at its launch in 2017, Binance Coin has shown significant growth. In July 2017, it reached a peak of around $484. Its value stands at $240 with a market cap of $37 billion, showcasing its potential as a formidable cryptocurrency.
Solana (SOL): Valued at around $75 by January 2024, Solana has come a long way. SOL has a market cap of $32 billion, and the coin is rapidly growing. It supports decentralized applications and smart contracts and is powered by a unique hybrid proof-of-stake and proof-of-history mechanism.
Ripple (XRP): XRP has a market cap of $24 billion. The Ripple network for facilitating different currency exchanges is excellent. Its price journey from $0.004 in early 2017 to $0.45 by January 2024 has put it on the map.
US Dollar Coin (USDC): USDC is a great stablecoin. It has a market cap of $20 billion. Pegged to the US dollar, it aims for a 1:1 ratio and is powered by Ethereum.
Cardano (ADA): Cardano has a market cap of $14 billion. It stands out for its early adoption of proof-of-stake validation. ADA powers its platform for smart contracts and decentralized applications.

Bitcoin’s resistance to frequent upgrades is good and bad – you can’t argue that it’s done fine without it. It’s top of the charts and always will be. But the issue is scalability and security, not how many people are buying it. Do you think Bitcoin should start upgrading?

Profit reinvestment is imperative for the sustainable growth of small and medium-sized enterprises (SMEs) in the Philippines. Despite their humble beginnings, SMEs are pivotal players who drive innovation and development in the country’s business sector. For these businesses, reinvesting profits is a financial maneuver that requires foresight, strategy, and ambition. The adequate reinvestment of gains can transform modest origins into thriving commercial success stories. However, as a budding business owner, you may be presented with a unique set of challenges that require a particular set of skills and strategies.

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It is important to emphasize that this financial undertaking extends beyond allocating financial resources. It also demands a profound understanding of evolving consumer behaviors, market trends, and technological advancements. Hence, you must adopt a comprehensive approach to profit reinvestment to propel your business toward sustainable growth and to ensure resilience in a fiercely competitive market. If you’re wondering where to start with your profit reinvestments, here are some ideas that can help you:

Invest in Quality E-Commerce Platforms

The modern age requires every business to have a solid online presence. Investing in a high-quality e-commerce platform is a strategic move that can significantly enhance the reach of your growing business. This does not only entail setting up an online store but also ensuring that it’s optimized for user experience, mobile responsiveness, and seamless transactions. Your website is your digital storefront that is open 24/7, allowing you to tap into broader markets beyond the immediate area your business serves, thereby helping you maximize your sales.

Part of your e-commerce investment can go into adopting reliable online payment solutions. With Shopify Plugin from Maya Business, you can integrate the Shopify payment gateway Philippines’ top SMEs depend on. Having implemented a trusted payment gateway, Shopify site webmasters like you will be able to accept all types of contemporary payment methods, including debit and credit cards, e-wallets, and QR payments.

Upgrade Your Technological Infrastructure

Technological advancements are reshaping industries at an unprecedented pace, and for SMEs, staying competitive means staying on top of these changes. Boosting technological infrastructure is important for enhancing operational efficiency, improving customer service, and securing business data. This could involve investing in cloud computing services for better data management, adopting customer relationship management (CRM) systems to personalize customer interactions, or implementing cybersecurity measures to protect against digital threats. Such technological investments can lead to significant long-term benefits, like increased productivity and a more robust defense against tech-driven market disruptions.

Strengthen Employee Skills and Knowledge

Your employees are your most valuable assets, and investing in their development can yield substantial returns. Competition for skilled labor is often intense, so offering training and development opportunities can be a crucial differentiator that sets your business apart from rivals. This investment can take many forms, from professional development courses and workshops to attending industry conferences or even pursuing advanced certifications. Enhancing your team’s skills and knowledge can improve your business’s operational efficiency and facilitate a culture of continuous learning and innovation. This not only promotes employee retention but also ensures your business stays ahead of the curve in a rapidly evolving market.

Optimize Your Supply Chain Management

Efficient supply chain management is paramount for SMEs looking to reinvest profits effectively. This involves facilitating operations to reduce fulfillment costs and improving product delivery times, both of which will serve to enhance customer satisfaction. Consider implementing technologies that offer real-time tracking of inventory and shipments or renegotiating terms with suppliers for better rates or payment schedules. Look into ways to minimize waste and optimize logistics. An efficient supply chain cuts down on unnecessary costs and ensures a smoother, more reliable service to your customers. In a market where consumer expectations are constantly rising, a streamlined supply chain can be a significant competitive advantage and a worthwhile reinvestment of your profits.

Implement Advanced Analytics for Data-Driven Decisions

Data is often referred to as the new currency in the business world, which also holds true for the Philippines. Investing in advanced analytics tools and expertise can transform your business decision-making processes. By harnessing the power of data, you can gain deeper insights into customer behavior, market trends, and bottlenecks in operational efficiency. This enables you to make informed, data-driven decisions more likely to yield positive outcomes. Advanced analytics can uncover hidden opportunities and help you stay ahead of market shifts, giving your business a competitive edge in the Philippines’ ever-evolving business landscape.

Diversify Your Product or Service Offerings

Product diversification is another area in which you can reinvest the profits of your business. Expanding your range of products or services can help your business tap into new market segments and reduce your dependency on a few profitable products. However, diversification should be well-researched and aligned with market demands. Prior to reinvesting your gains in product expansion, conduct consumer and market studies to identify gaps or unmet needs and ensure that any new offerings align with your brand identity and customer expectations. Strategic diversification can catalyze long-term growth, giving your business a competitive edge in the diverse Philippine market.

Reinvest Your Profits Wisely to Seize Opportunities

The strategies you have explored in this article are your tools for charting this path. Yet, the real power lies within you—the entrepreneur with a vision, the determination, and the adaptability to thrive in a dynamic marketplace. It’s about seizing the reinvestment advantage, understanding that each peso reinvested is a stepping stone toward a brighter future for your small business. With each strategic move, you are shaping the future of your company and cementing your place in your industry.

Month: February 2024

Is Bitcoin’s Resistance to Upgrade a Positive?