Bitcoin OG Willy Woo mentioned Bitcoin is the “excellent asset” for the following 1,000 years, however says it received’t overtake the US greenback and gold except it attracts considerably extra capital.
“The factor is, you dont get to vary the world except this financial asset — for my part, the right asset for the following thousand of years — doesn’t get to do its job except capital flows in and will get large enough to rival the US greenback,” the Bitcoin investor mentioned on the Baltic Honeybadger convention in Riga, Latvia, on Sunday.
Bitcoin’s market cap at present sits at $2.42 trillion, lower than 11% of gold’s $23 trillion market cap, whereas the US greenback cash provide sits at $21.9 trillion.
Bitcoin treasury corporations enhance adoption, however with dangers
Woo mentioned there are not less than two obstacles stopping Bitcoin from towards changing into a world reserve asset.
Whereas Bitcoin treasury corporations are accelerating adoption, little is thought about how they construction their debt — a threat that might result in a Bitcoin treasury bubble burst.
“Nobody’s actually publicly seemed deeply into the debt structuring, so I completely assume the weak ones will blow up, and folks can lose some huge cash,” Woo mentioned, including that altcoin treasuries are actually training the identical playbook that might “create one other bubble.”
He expressed concern over how the Bitcoin treasury adoption will unfold ought to a major market correction or bear market ensue:
“What occurs to the bear market? Who’s swimming bare and what number of cash get slapped again out into the market?”
Bitcoin susceptible to nation-state meddling
In the meantime, reliance on spot Bitcoin exchange-traded funds and pension funds for Bitcoin publicity — versus self-custody — might focus extra Bitcoin (BTC) inside arm’s attain of nation-states, growing the danger of a government-led rug-pull, he mentioned.
Woo famous that whereas Bitcoin is attracting flows, the buyers with the “cash baggage” aren’t opting to self-custody.
As a substitute, they’re in search of publicity by way of spot Bitcoin ETFs or Bitcoin treasury firms like Technique, Woo mentioned, including that pension funds are counting on institutional options like Coinbase Custody.
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Whereas these Bitcoin on-ramps open the floodgates for extra capital, buyers are taking over the danger of “being rugged at a nation-state degree,” Woo mentioned.
Woo was talking alongside different panelists together with Blockstream CEO Adam Again, host of What Bitcoin Did Danny Knowles, Bitcoin analyst Leon Wankum and Max Kei.
Kei, founder and CEO of Bitcoin self-custody platform Debifi, mentioned self-custodying Bitcoin will unfold progressively — from custodians like Coinbase to on a regular basis companies and eventually to people.
“[The companies will] learn to self-custody, and they are going to do self-custody. Then there’s people inside these firms [who will] find out about that. After which successfully it is simply going to unfold out massively.”
Firms nonetheless probably the most ‘logical’ place for Bitcoin adoption
Regardless of Woo’s issues about company Bitcoin adoption dangers, Again mentioned firms stay probably the most logical place to begin for Bitcoin adoption.
Utilizing Bitcoin’s anticipated future returns as a “hurdle charge” for investments, he mentioned, “If an organization can’t beat Bitcoin, they need to shut up store and purchase Bitcoin.”
He added that firms with strong core companies can nonetheless thrive by integrating Bitcoin, stating that “It doesn’t should be a pure play.”
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