Alliance DAO co-founder QwQiao recently discussed the potential of L1 tokens as a safe haven asset, potentially offering a hedge against Bitcoin’s inherent volatility. According to QwQ Qiao’s insights on X (formerly Twitter), if L1 tokens prove capable of serving this purpose, their prices may not be significantly inflated and could offer protection against Bitcoin fluctuations. He highlighted two major risks associated with Bitcoin that could hinder its long-term performance: security budget constraints and quantum resistance. Bitcoin’s limited flexibility might make it challenging to swiftly address these challenges. Despite these concerns, QwQiao firmly believes Bitcoin remains the leading non-sovereign currency and a likely candidate for replacing gold. However, he emphasized the importance of considering L1 tokens as a potential hedge against Bitcoin volatility due to these risks. Previous discussions from Alliance DAO co-founders suggested that L1 tokens lack a clear competitive advantage, advocating for an approach focused on application layer development as a viable strategy moving forward.