This year, Bitcoin, the grandfather of cryptocurrency, was drowning in the industry's hustle and bustle. As the market hailed the Ethereum merge, was horrified by Luna, embarrassed by 3AC liquidation, and later lost its mind over the new Layer-1 Aptos and Elon Musk-induced Doge surge, Bitcoin appeared to sink deeper into the background.What precisely is going on in that crypto corner? What is the current state of Bitcoin development? How is the community doing? This article is a fantastic opportunity to examine and stay current on Bitcoin's progress.<h2>Miner capitulation</h2>One of the most pressing concerns regarding Bitcoin is its security. Mining Bitcoin becomes a less viable business when the BTC price falls during the bear market. More money is required (for energy, mining equipment, and so on) than the revenue from each Bitcoin produced.Miners may eventually incur a loss, causing them to close their doors. The departure of miners causes less decentralization. Bitcoin block production is controlled by fewer entities. As a result, the Bitcoin Network is subject to attacks (the 51% attack), similar to what Bitcoin's derivatives like BSV have experienced.Bitcoin security flaws are not rare. People were already concerned about the bull market even at its peak. It was more about diminishing block rewards with each half at the time than the price itself.&nbsp; However, some think that cutting block rewards is something we can put off for the time being. However, price reductions are a more important issue. Some miners have recently surrendered, as evidenced by recent headlines.<iframe width="550" height="400" src="data:text/html;charset=utf-8,%3Cblockquote%20class%3D%22twitter-tweet%22%3E%3Cp%20lang%3D%22en%22%20dir%3D%22ltr%22%3EBitcoin%20miner%20Argo%20Blockchain%20-41.1%25%20today%20at%20the%20open.%3Cbr%3E%3Cbr%3E%u201CShould%20Argo%20be%20unsuccessful%20in%20completing%20any%20further%20financing%2C%20Argo%20would%20become%20cash%20flow%20negative%20in%20the%20near%20term%20and%20would%20need%20to%20curtail%20or%20cease%20operations.%u201D%3Ca%20href%3D%22https%3A//twitter.com/search%3Fq%3D%2524ARBK%26amp%3Bsrc%3Dctag%26amp%3Bref_src%3Dtwsrc%255Etfw%22%3E%24ARBK%3C/a%3E%20%3Ca%20href%3D%22https%3A//t.co/VgaBBq02mu%22%3Epic.twitter.com/VgaBBq02mu%3C/a%3E%3C/p%3E%26mdash%3B%20Dylan%20LeClair%20%uD83D%uDFE0%20%28@DylanLeClair_%29%20%3Ca%20href%3D%22https%3A//twitter.com/DylanLeClair_/status/1587076504147689472%3Fref_src%3Dtwsrc%255Etfw%22%3EOctober%2031%2C%202022%3C/a%3E%3C/blockquote%3E%0A%3Cscript%20async%20src%3D%22https%3A//platform.twitter.com/widgets.js%22%20charset%3D%22utf-8%22%3E%3C/script%3E%0A"></iframe>The most powerful Bitcoin miner (with the highest hashrate) is unable to pay their expenses. Core Scientific, one of the largest publicly listed cryptocurrency mining businesses in the United States, raised the prospect of bankruptcy in a filing with the Securities and Exchange Commission. The corporation also stated that it will not make debt payments due in late October and early November.&nbsp; Following the filing, Core's shares dropped as much as 77%. Core's market capitalization has decreased to $90 million since launching on the Nasdaq through a special purpose acquisition firm, or SPAC, from a $4.3 billion value when the business went public in July 2021. This year, the stock has dropped by more than 97%. Despite selling almost all of its Bitcoin in June, the company's cash reserves had been reduced to $26.6 million. Despite the fact that Core self-mines bitcoin to replenish its own reserves ($770,000 in bitcoin), the business cautions that it may run out of its reserve by the end of the year, if not sooner.The only way to save them is to obtain a market huge rally as soon as possible. It appears to be dependent on the global macroeconomic condition at the moment:&nbsp; FED increases, inflation, CPI, hawkish versus dovish.&nbsp; However, anything of the listed above is hard to be predicted now.<h2>The lack of development</h2>The most urgent concern with Bitcoin is its lack of development. While the crypto sector is teeming with ideas, inventions, and new approaches, Bitcoin appears to remain static everywhere it is. When asked who the most well-known Ethereum developers are, a random crypto enthusiast can name a few: Tim Beiko (the core developer ), Samczsun (the security developer), The two Taroons (the researcher), and Vitalik himself. We had Sunny (Cosmos), Toly (Solana), and Andre (Fantom) in non-ETH sections. Not to mention many other DeFi developers.Builders swarm everywhere except Bitcoin. Bitcoin m axis would claim that this is due to the fact that Bitcoin is a finished product. Nothing needed to be changed or updated. That belief could hardly be more incorrect.Even if we all agreed that nothing should be altered about Bitcoin at its foundation, something had to be done to increase acceptance. Something that a 14-year-old tech still hasn't mastered. Even newer blockchains have more transactions per day than the Bitcoin network. The lightning network? We can reasonably say that was a colossal flop.The Bitcoin intellectual drain is genuine, leaving the group largely constituted of radicalized maxi, headed by unscrupulous people like Saylor or Max Keiser, or 'podcasters' like Peter McCormack. It appears to be a cult rather than an intellectual community. Everyone is preaching the same gospel to each other, yet no genuine progress is taking place.<h2>Close-minded community</h2>It's no surprise that wiser individuals avoid communities like Bitcoin maximalists. The closed-mindedness that "everything but bitcoin are valueless" pushes away not just new newcomers, but also existing community members.We've witnessed a sort of exodus among what was formerly described as Bitcoin-only public personalities in the last few months. Those who follow CT (crypto Twitter) may be aware of the 'drama' between Nic Carter and Bitcoin maxi. Soon after, Will Clemente, a previously Bitcoin-only analyst, started to cover altcoins as well. A decision that caused Maxi to lose their mind.It's not that no one wants to develop Bitcoin further. The holier-than-thou mentality, the narrow-mindedness, and the purity test all contribute to the harsh climate that Bitcoin developers must face when opting to grow the ecosystem. Nobody wants to work in such an environment. A lack of support is one thing, but being viewed as an apostate is another. It serves as a reminder of how cultish the community can be.&nbsp;Bitcoin&nbsp; Maxis criticized the inventor of Bitcoin Layer 2 Stacks for attempting to implement NFT and DeFi on top of Bitcoin. Stacks, according to their maximalism argument, is not Bitcoin (ironically enough, Lightning Network is not Bitcoin as much as Stacks, yet receives the advocation of the Bitcoin community.)As a consequence, despite being launched during the apex of the bull market, when Layer 1 and Layer 2s are at their best, the project never attained its full potential. Even their own Bitcoin community was unsupportive.<h2>Some upsides of Bitcoin</h2>We have gone through the downsides of Bitcoin. Now let’s evaluate some positives.The only thing Bitcoin is excellent at these days is being the most 'lindy' cryptocurrency on exchanges. Although Ethereum is gaining ground, Bitcoin's market value remains unbeatable. All of this adds up to one thing: Bitcoin is the cryptocurrency to use if you want to exchange large amounts of money reasonably safely. The threat to this position is the flippening, which ETH might perform at any time. When altcoins thrive, names like Doge will soak up the liquidity, leaving Bitcoin trading a bleak desert of opportunity.Let us return to the promise of Bitcoin as an inflation hedge that was widely publicized last year. Traditionally, there is a principle that in order for an asset to function properly as an inflation hedge, it should not be purchased a year before the inflation. So, for example, if you buy cryptocurrency this year, you expect it would protect you against inflation in 5-10 years.With that in mind, let us assess how well Bitcoin performed for everybody who purchased it 5 years ago – and more.As may be seen. Bitcoin, along with other crypto blue-chips such as Ethereum, has been performing well. Even if today's price is close to the top of the last cycle, the rationale is that anyone who bought the top the prior time is either DCA-ing or capitulating. Long-term investors from 2017 and after are more likely to benefit.<img src="https://cdn.builder.news/news/11ed6bd05d79348aa8e6023f659fee92.jpg" alt="bitcoin price chart" title="bitcoin price chart" width="600" height="361" class="lykafe0">Source: Trading viewWhen compared to some of the tech stocks that have been knocked down during 2022, Bitcoin's favorable performance is even more obvious. Consider the Meta stocks. If you bought Facebook stock in 2015, you are currently in the red.<img src="https://cdn.builder.news/news/11ed6bd05d79481aa8e6023f659fee92.jpg" alt="meta price chart" title="meta price chart" width="600" height="358" class="lykafe1">Source: Trading ViewBitcoin has performed better than Meta thus far. Even when compared to gold, Bitcoin outperformed.<img src="https://cdn.builder.news/news/11ed6bd05d794e11a8e6023f659fee92.jpg" alt="gold price chart" title="gold price chart" width="600" height="240" class="lykafe2">Source: Bullionvault.Another upside for Bitcoin is the Taproot update, which adds the smart contract capability to the cryptocurrency. This enables the development of decentralized apps on the Bitcoin blockchain, which was previously confined to payment transactions. And there's the Lightning Network, which acts as a second layer on top of Bitcoin, allowing for substantially higher efficiency and throughput. This might enable Bitcoin microtransactions that were previously impossible owing to cost and time inefficiencies. This would support the argument that Bitcoin is an acceptable means of exchange and an alternative to fiat currencies. Although both of these updates have the potential to greatly enhance the Bitcoin network, they are still in their infancy. Decentralized apps (dApps) and smart contracts on Bitcoin were made possible by Taproot. On a fresh network, creating dApps from scratch takes time. There are no active dApps on the Bitcoin network as of the time of publishing. Therefore, it is uncertain if Bitcoin can compete as a blockchain for smart contracts.&nbsp;ConclusionWhere will Bitcoin go from here? Nobody is sure, and that's not the goal of this article. However, we can draw some conclusions about what you should know before purchasing bitcoin in 2022.&nbsp; You are trading a liquid asset when you use Bitcoin. If you wish, there is enough volume every day to make million-dollar trades.&nbsp; With Bitcoin, you buy something that has a higher security risk (the 51% attack) every day as the bear market deepens. Additionally,&nbsp; Bitcoin is a crypto asset with the least intriguing development, maybe only topped by Cardano. If you are buying Bitcoin, you may purchase something that is too late to function as an inflation hedge in 2022. If you want to buy in the future, keep in mind that previous performance does not predict future results.<div class="pr-block-special">Disclaimer: This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Bitcoin (BTC) is known as the father of cryptocurrency. But actually, it has a limited number of use cases and seems to fall behind in comparison with others

Is Bitcoin Falling behind?