In many aspects, Bitcoin is superior to other cryptos, gold, and even government-issued money like the dollar. The business expects Bitcoin will be worth a lot more in five to ten years.
Security and Exchange Commission
The Security and Exchange Commission denied Fidelity’s request for an exchange-traded fund based on Bitcoin’s current price this week. That’s horrible for Bitcoin. But wait, the company already has a Bitcoin exchange-traded fund and a mutual fund in Canada and wants the security and exchange commission to approve two more crypto-related exchange-traded funds.
The bull case for BTC, according to Fidelity, is that it is a digital asset store of value. In a blog post, Kuiper stated that no other blockchain network or token can match Bitcoin’s security, decentralization, and soundness.
While alternative digital assets and networks, like Ethereum, have some advantages, trying to improve the Bitcoin network involves sacrificing speed, scalability, or security.
The fact that Bitcoin is a store of value lessens the danger of alternative tokens and networks, according to Kuiper. Unlike other tokens, Bitcoin should keep its value as more people embrace it globally.
He claims it’s healthier than gold. Two things: they can only be mined to a certain extent. BTC is easy to move and store, and its underlying blockchain network ensures its security. Bitcoin’s annual growth rate of 1.8% is the same as golds.
As more people get into debt in the old financial system, real interest rates are negative and there’s a chance that traditional currencies will lose their value.
Bitcoin Mining
Sure, none of this is new. Also, Bitcoin has many issues. One of them is that its fluctuating prices make it unsuitable for one of money’s main roles–exchange. Bitcoin mining also pollutes the environment, emitting nearly as much carbon dioxide as small countries. China, for example, restricts Bitcoin use because it threatens its monetary sovereignty and policies.
Kuiper comes up with many counter-arguments. To begin, he advises investors to consider BTC as a safe way to store funds. Its limited supply and fluctuating demand generate its volatility. It will become less volatile and more popular as more people use it.
He believes that rather than trying to outlaw BTC, countries are learning to coexist with it. Russia and India appear to be more interested in taxes and regulations, and the United States may follow suit.
On the environment, he says that the network uses less than 1% of the world’s energy, which is the same amount of power used by domestic washers and dryers in the United States. This is the same amount of power used by these appliances. For example, one could ask the same question about how much energy it takes to run video games or wash clothes.
For now, the market appears uninterested in Bitcoin’s positive thesis. The coin is still down almost 50% from its record highs in November. Mid-afternoon on Wednesday, it was around $37,500.
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