The approval of Bitcoin ETFs serves as a form of mainstream validation, but longtime Bitcoiner Paul Sztorc says the ecosystem still needs to think carefully about scaling.

Bitcoin Drivechain proponent Paul Sztorc believes the growing mainstream acceptance of BTC will drive a need for greater scalability and functionality of its infrastructure.

In a wide-ranging interview with Cointelegraph, Sztorc touched on the advantages and drawbacks of the high-profile approval of Bitcoin exchange-traded funds (ETF) in the United States and the long-term implications of institutional money flooding into the ecosystem.

“It’s a sign of health, a sign of validation. Bitcoin is certainly more recognizable, and its name is getting out there. It’s also a result of certain types of money that must flow through ETFs,” Sztorc said.

The co-founder of LayerTwo Labs described Bitcoin ETFs as an “inevitable consequence of age,” highlighting that customers of the BTC-backed investment products differ from everyday retail investors and hardcore Bitcoiners:

“ETFs are inherently custodial, plugged into the apparatus of reporting to government and the state. Nevertheless, the type of person relying on an ETF would be unlikely to self-custody Bitcoin anyway.”
Sztorc admits that the hype around Bitcoin ETFs may serve as an entry point for investors and individuals who have yet to learn about BTC. At the same time, the focus on their impact could be causing undue attention on Bitcoin’s value rather than its underlying metrics and performance.

“The bad things? ETFs continue people’s obsession with price. A CEO should never talk about stock price, they should focus on what drives it. The quality of the product and how happy their workers are,” Sztorc adds.

Bitcoin scaling is still a work in progress
LayerTwo Labs has been developing Drivechains for over four years. Bitcoin Improvement Proposals (BIPs) 300 and 301 outline how the Bitcoin network could create, delete, send and receive BTC from layer-2 blockchains, commonly called sidechains.
Sztorc, who authored BIP-300, is a proponent of the functionality afforded by Drivechains and has spoken at length about the intricacies of the two BIPs at several Bitcoin conferences in recent years.

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Source - Coin Telegraph