According to @balajis, Bitcoin's scalability is achieved primarily through offchain mechanisms and the use of other blockchain networks. Traders typically move BTC into exchanges for offchain transactions or utilize wrapped BTC on alternative chains, creating a hub-and-spoke system rather than a fully peer-to-peer network. This approach allows any BTC holder to establish a transaction hub, which can impact liquidity flow and trading volumes across different platforms. These scalability developments are crucial for traders monitoring BTC transaction costs and network congestion, as they can influence arbitrage opportunities and cross-chain asset movement (Source: @balajis).