In this video, I discuss the various trade-offs involved with using BTC on Coinbase, the Liquid Network, the Lightning Network, and in fedimints.
Putting BTC on a Layer 2 does not make it a shipcoin, provided that there is real BTC locked up on-chain that backs it. I would draw the line at wBTC which uses altcoin payment rails like Ethereum.
As on-chain transaction fees continue to rise, much or all of our Bitcoin transaction activity will take place on higher layers.
While it's important to minimize trust, there is still a place for trust and custodial solutions in the Bitcoin ecosystem, which includes adults holding BTC for young children or older people in their family.
We should expect some form of BTC to end up in every nook and cranny of the global financial system as well as on different Bitcoin layer 2s, because this is what hyperbitcoinization looks like.