Over the years, Bitcoin has evolved from a pure store of value to a more useful asset, with its adoption increasing in the payments industry.
As a result, consensus protocols and fee-based transactions are becoming a greater focus, as outlined in the BIP-110 proposal. But not everyone is convinced this is the right direction; Michael Saylor is also one of the most critical of this approach.
In a post on X, Michael Saylor listed 110 reasons why he believes BIP-110 is a bad idea.
His criticism targets Version 1.0.0 of the proposal, known as the “Reduced Data Interim Softfork,” which reached full status on June 25, 2026. The proposal introduces a soft fork that prioritizes fee-paying Bitcoin transactions over non-financial data.
In particular, on-chain data currently reflects an increased focus on transactional activities.
As the chart above shows, Bitcoin set a new quarterly record by processing over 56 million transactions in the second quarter of 2026, surpassing the previous high of 55 million recorded in the third quarter of 2024.
The increase signals increased network usage, reinforcing Bitcoin’s transition beyond its role as a long-term store of value.
Against this background, it is easy to understand why Michael Saylor doubled down on his criticism of BIP-110. In a follow-up post about X, he argued: Bitcoin (BTC) The long-term strength lies in deeper adoption by public companies rather than protocol changes aimed at increasing utility.
Interestingly, when viewed in conjunction with an important difference in the chain, Saylor’s argument begins to carry more weight.
Bitcoin’s valuation is outpacing network adoption
Bitcoin’s valuation is rising faster than its adoption.
This is happening even as Bitcoin’s transaction activity reaches an all-time high. Despite a stronger push for greater benefits through the BIP-110 soft fork, Bitcoin’s market cap continues to grow faster than user activity.
This widening gap suggests that speculation is playing a larger role in BTC’s valuation.
As seen in the chart below, Bitcoin’s Metcalfe Ratio is currently around 3.23. As the rate increases, it means the price moves further away from the growth in network participation.
Fundamentally, BTC’s price is increasing faster than adoption, underscoring increased speculative investment side of the current cycle.
In this context, Saylor’s push The idea of greater BTC exposure among public companies is starting to make sense.
As the market becomes more focused on consensus upgrades, network efficiency, and overall scalability, debates about Bitcoin’s long-term fundamentals continue to grow.
Meanwhile, increased speculative activity raises questions about whether BTC’s store of value narrative needs stronger institutional adoption.
Taken together, these factors subject Bitcoin’s valuation narrative to greater scrutiny; because the market is weighing network growth and adoption against the growing speculation that is driving the current cycle, creating massive liquidity clusters around underlying BTC levels.
Final Summary
- Bitcoin’s network activity is growing with record transaction levels and a greater focus on utility through proposals like BIP-110.
- Bitcoin’s valuation is increasing faster than adoption, indicating that speculation is playing a larger role in BTC’s current cycle.
