Bitcoin OG Willie Woo said that Bitcoin is the “perfect asset” for the next 1,000 years, but that it will not overtake the US dollar and gold unless it attracts a significant amount of capital.
“The problem is, this financial asset – in my opinion, we cannot change the world unless it is a perfect asset for the next millennium.
Bitcoin’s market capitalization is currently at $2.42 trillion, less than 11% of gold’s $23 trillion market capitalization, and the US dollar’s money supply is $21.9 trillion.
Photos from left to right: Danny Knowles, Leon Wancome, Max Kay, Adam Buck and Willie Woo talk about the “next” of Bitcoin. sauce: He went
Bitcoin finance companies will support hiring, but there are risks
Wu said there are at least two obstacles that prevent Bitcoin from becoming a global reserve asset.
The Bitcoin Treasury is accelerating adoptions, but little is known about how they build their debts. This could lead to a Bubble burst at the Bitcoin Treasury.
“No one really looks into debt structuring so we absolutely believe that weaknesses can explode and people lose a lot of money,” Wu said, adding that Altcoin Treasuries is currently practicing the same playbook as “creating another bubble.”
He expressed concern about how Bitcoin Treasury adoption will unfold if a significant market correction or bear market continues.
“What will happen to the bear market? Who is swimming naked?
Bitcoin at risk of interfering with nation-states
Meanwhile, Bitcoin’s reliance on exchange trading funds and pension funds for Bitcoin exposure could, in contrast to independence, concentrate more Bitcoin (BTC) within the arms of nation-states, increasing the risk of government-led lagpur.
Wu pointed out that while Bitcoin is attracting the flow, investors with “money bags” have not chosen to be independent.
Instead, they are seeking exposure through Bitcoin finance companies like Spot Bitcoin ETF or Strategy, Woo added that pension funds rely on institutional solutions such as Coinbase Custody.
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These Bitcoin-on-ramps are opening their locks for more capital, but investors are taking on the risk of becoming “sturdy at the nation-state level,” Wu said.
Woo was working with other panelists, including Danny Knowles, Bitcoin analyst Leon Wankum and Blockstream CEO Adam Back, host of Max Kei.
Kei, founder and CEO of Bitcoin Self-Custody Platform Debifi, said that from custodians like Coinbase, everyday business, that is, ultimately, self-supporting Bitcoin will gradually spread.
“(Companies) learn how to become independent, they become independent. And within these companies there are individuals who learn about it. And in effect, it will spread on a large scale.”
Companies are the most “logical” location for adoption of Bitcoin
Despite Woo’s concerns about the risks of companies’ adoption of Bitcoin, Back said companies remain the most logical starting point for adopting Bitcoin.
Using Bitcoin’s expected future returns as the “hurdle rate” for investment, he said, “If the company can’t beat Bitcoin, you’ll need to close the shop and buy Bitcoin.”
He said that Bitcoin integration “it doesn’t have to be pure play,” adding that integrating Bitcoin will allow businesses responsible for solid core businesses to flourish.
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