The vision of Bitcoin absorbing the entire world’s capital float is a compelling story, but it runs head-on with important technical constraints. Bitcoin will not realize this great potential unless a mechanism is created to move and utilize capital directly on the network.
Why Bitcoin can’t absorb global wealth overnight
Analyst British Hoddle presents a strong paper on the role of BTC, claiming that its impact is far beyond its own assessment and fundamentally changes the way global capital is allocated. with x postUK HODL said that BTC aims to absorb global capital, but this is conditional and that BTC will not capture all capital streams on the planet unless it is redirected to the BTC network.
However, as BTC becomes more widely understood, capital becomes very sensitive, with only the highest quality stocks attracting capital. This is simply an existing one, Long term A trend evidenced by the dominance of a selected few, including the grand 7 stocks (MAG7) stocks in traditional markets over the past 30 years.
Bitcoin strengthens this trend as it provides a highly accessible and transparent standard for risk-free returns. When the risk hurdle rate increases, Investors They are no longer satisfied with the small profits from poor quality assets.
The outcome of this is important market Cleaning and many intensive value creation innovations as companies are forced to offer exceptional performance to gain capital. Meanwhile, there are very fast sales of terrible companies as BTC value propositions become increasingly understood by investors. British Hodl reveals that in an era of dominance over BTC, it is necessary to outperform BTC on a risk-adjusted basis to acquire capital.
The growing view of Bitcoin as an alternative
Billionaire investor Ray Dalio, founder of Bridgewater Associates, maintains Bitcoin’s balanced skepticism and acknowledges its growing influence, pointing out the fundamental flaws that hinder the ultimate adoption of nation-states.
Dario start Although it cannot be said exactly how effective BTC is as money, by stating that the fact that many people perceive it as alternative money is worth paying attention. He frames the utility of any currency as both a medium of exchange and a storage of wealth, emphasizing the latter being more important.
in spite of Its innovative technology, Dario is highly doubtful that the central bank will take it over as a reserve currency. However, for everything transaction It is public, but there is no privacy. This is unacceptable for sovereign entities that manage the vast amount of financial operations. As a result of future risks, the code can break and reduce its effectiveness through it government control. Experts have confirmed that he has BTC in his portfolio, but not a significant amount.
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