Bitcoin had a rough ride in July, but it’s now back up to $64,500 after peaking at $69,000. Considered a store of value by many investors, both retail and institutional, the queen of cryptos remains strong. Matt Hougan’s argument about Bitcoin’s value despite its lack of cash flow is worth paying close attention to. Let’s dive into the details!
The Value of Bitcoin: A Golden Service
For many, the question remains: How can Bitcoin have value without generating cash flow? According to Matt HouganCIO of Bitwise, the answer lies in the unique service that this crypto offers.
He claims that bitcoin allows secure wealth without the need for banks or middlemen. Compare this to Salesforce, which provides a customer relationship management service for a fee.
However, Bitcoin, being a decentralized protocoldoes not charge any fees for its use.
Hougan explains: “ If more people want Bitcoin's service, its value increases. »
This perspective revolutionizes our understanding of the value of digital assets. Indeed, The number of Bitcoin users continues to growresulting in an increase in its valueapproximately 9,700% over the last ten years. A figure to think about!
Crypto: Towards a new golden age?
The excitement around bitcoin is not limited to individual investors. Influential figures, such as BlackRock CEO Larry Fink, see Bitcoin as a a refuge in times of economic uncertainty.
He describes this crypto-asset as “ an instrument you invest in when you are afraid ” or when national currencies lose their value.
This growing recognition contrasts with Critics who consider Bitcoin useless except for money laundering.
Yet recent political developments in the United States, including promises by Donald Trump and Robert Kennedy Jr. to create a national BTC reserveare game changers.
Hougan even predicts that G20 countries could anticipate the United States by adding Bitcoin to their reserves. These political and economic outlooks point to a surge in the flagship crypto in the near future.
In summary :
- Bitcoin growth: +9,700% in 10 years;
- Increased political support: promises of national reserve;
- Recognition as a safe haven: support from BlackRock.
So what does the future hold for Bitcoin in the short term, or especially this summer? Recent political and economic developments could well radically transform the landscape of this crypto. Otherwise, many believe that by maintaining its “store of value” status, BTC could go very far, even trading at $23 million per coin.
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