OG Founder Admits Bitcoin is The King

Welcome everyone to the latest edition of The Roundup,

This week we’re covering 👇

• Lightning Network enables Bitcoin-native stablecoins

• Litecoin founder admits to his younger self he’d rather buy Bitcoin

• Global fiat debasement condensed into one chart

Let’s get it!

1️⃣ Bitcoin's Lightning Network Just Made Stablecoins Obsolete

Kaleidoswap executed the first RGB20 stablecoin swap on Bitcoin's Lightning Network mainnet this week. The technical achievement highlights a deeper truth: stablecoins in their current form (on a variety of different blockchains) are just a temporary bridge, not the final destination.

The RGB protocol enables stablecoins on Bitcoin's Layer 2, bringing dollar-denominated transactions to Lightning's near-zero-fee payment rails. For now, this matters because Bitcoin's volatility makes the base layer impractical for everyday commerce.

But here's what most people miss: current stablecoins (USDC, USDT etc.) are merely training wheels for a Bitcoin-native payment system.

They currently dominate crypto payments ($300B+ market cap) because they offer price stability. Merchants need predictable pricing. Consumers want their $5 latte to cost $5, not some fluctuating amount denominated in BTC.

However, these stablecoins are just fiat, but with a few extra steps. USDT is backed by actual dollars in bank accounts. You’re therefore still exposed to:

• Dollar debasement;

• Counterparty risk (via the bank itself);

• Regulatory capture; and

• Privacy concerns.

You've moved payments to the blockchain for efficiency, but you haven't escaped the drawbacks of the fiat system. The real endgame is Bitcoin-native payments.

That’s where tools like Kaleidoswap for stablecoins on the Lightning Network come in. And the Lightning Network already proves this is possible. Millions of transactions settle instantly for fractions of a cent.

What's the lesson? Stablecoins solve today's volatility problem but create tomorrow's centralization problem. RGB20 on Lightning shows we can have both: dollar stability now, Bitcoin finality later. The future is Bitcoin absorbing global stablecoin use cases as the price volatility of BTC decreases.

2️⃣Litecoin's Founder Admits What Everyone Already Knew

Charlie Lee created Litecoin in 2011, marketed it as the "Silver to Bitcoin's Gold" and then famously sold all his LTC holdings near the top in December 2017.

Fast forward to this week, and Lee sat down for an interview with Coindesk. When asked the simple question of what advice he’d give to his younger self, he answered:

“Buy Bitcoin and hold it”

Not Litecoin. Not a diversified crypto portfolio. Just Bitcoin.

This is the same guy who founded one of the longest-surviving “OG” altcoins (still in the top 30 by market cap after 14 years). Even he wouldn't recommend buying his own creation as a long-term wealth preservation strategy.

The honesty is refreshing, but the lesson isn't new. Every long-term participant eventually arrives at the same conclusion: Bitcoin is the only ‘crypto’ that matters for storing value across decades.

Why? Because Bitcoin has genuine scarcity, true decentralization (no founder controlling development), and the most secure network in history as Bitcoin’s hash rate continues to hit new all time highs every month.

Everything else is either a payment rail, a yield instrument, or a speculative trade.

Lee figured this out the hard way. He sold his Litecoin at $300+ in 2017, citing "conflicts of interest." LTC eventually crashed below $40 in the 2018-2019 bear market. Meanwhile, Bitcoin holders who did nothing outperformed all active trading strategies.

The market keeps teaching the same lesson: Bitcoin is digital gold. Everything else is just noise.

3️⃣The Debasement Trade in One Chart

Speaking of Bitcoin as the ultimate store of value, this week we’ve got a chart that perfectly illustrates why institutions are calling Bitcoin "the debasement trade".

Since COVID, here's what happened when you price major assets in different units of account (h/t to Luke Gromen):

In USD: Nasdaq +165%, S&P 500 +102%, Home prices +56%

In Gold: Nasdaq +7%, S&P 500 -18%, Home prices -37%

In Bitcoin: Nasdaq -78%, S&P 500 -84%, Home prices -87%

Read that again. Tech stocks (which crushed during the AI boom) lost 78% of their value when priced in Bitcoin. The S&P 500 lost 84%. Real estate lost 87%!

Bitcoin didn't just outperform. It obliterated every other asset class.

This is what happens when central banks print trillions while Bitcoin's supply follows a predetermined schedule. The dollar devalued. Gold held steady. Bitcoin absolutely demolished everything else.

JPMorgan is now explicitly calling Bitcoin "the debasement trade" because the math is undeniable. While governments ran record deficits and expanded money supply, Bitcoin became the hardest asset in human history.

Gold bugs will point out that gold also outperformed. Fair point. But Bitcoin's performance wasn't just better, it was exponentially better. And unlike gold, Bitcoin is programmable, divisible to eight decimal places, and can be transmitted globally in minutes.

Here's what this all means: The chart above isn't speculation or hopium. It's math. Bitcoin isn't just outperforming, it's redefining what "outperformance" looks like.

‘Tradfi’ portfolios optimize for 6-12% annual returns, while Bitcoin holders are watching everything else lose ~80% of its value in BTC terms over just five years.

The debasement trade is playing out in real-time, and smart money is paying attention.

🎯 The Final Word

This week tells a complete story about Bitcoin's future 👇

1. Lightning Network now supports stablecoins, but that's just the beginning. Once Bitcoin's volatility subsides, there's no need for dollar-backed intermediaries.

2. Charlie Lee admitting he'd buy Bitcoin (not Litecoin) proves even altcoin founders know only one asset matters for wealth preservation; and

3. The debasement trade chart shows everything loses 80%+ of its value in Bitcoin terms.

The three-part thesis is clear: Bitcoin is building the infrastructure for payments (Lightning), it's already the dominant store of value (even competitors admit it), and it's mathematically outperforming every other asset class (the data proves it).

The boring strategy wins: stack Bitcoin, hold long-term, ignore the noise.

⚡Lightning Round

Paxful Shuts Down: One of the oldest P2P marketplaces winds down, citing compliance costs and founder misconduct.

CME Goes 24/7: Bitcoin and Ethereum futures to trade round-the-clock starting early 2026, eliminating CME gaps.

New York Lawmakers Propose Bitcoin Mining Tax: New tax proposal targets energy use by Bitcoin miners in New York state.