After nearly a decade of navigating the Bitcoin and crypto industry, you thought you had seen it all, but occasionally, new situations still emerge that can drop your jaw. This was exactly how I felt when I recently watched a video of Cardano founder Charles Hoskinson's recent talk. Hoskinson made remarks about selling Altcoins from the Cardano treasury to buy Bitcoin.
This video is eye-opening for three reasons. First, Hoskinson essentially acknowledges that his Altcoin cannot compete with Bitcoin in the long term. The only way to create long-term economic value is to sell Altcoin assets and buy Bitcoin. This seems to indicate that Altcoin founders have realized that Bitcoin will never disappear.
Secondly, Hoskinson seems to understand that Bitcoin treasury companies are launching speculative attacks on Bitcoin. These companies are buying Bitcoin by selling stocks, so Altcoin foundations are equally capable of selling Altcoins for Bitcoin. This "speculative attack" theory, promoted by Pierre Rochard in 2014, has become one of the most important concepts driving Bitcoin adoption in recent years.
The third point is perhaps the most intriguing - the outstanding performance of Bitcoin treasury companies is now too brilliant to ignore. Take Metaplanet as an example, where Simon Gerovich, Dylan LeClair, and their team have created one of the world's most outstanding stocks. In just over a year, they have grown their Bitcoin holdings on the balance sheet from zero to 10,000 coins. Such a development speed is breathtaking.
Imagine you now hold Altcoins worth hundreds of millions of dollars, yet watch them continuously depreciate against Bitcoin. Naturally, you would start to consider: selling Altcoins and investing in Bitcoin might achieve asset appreciation. This is no different from selling depreciating dollars or listed company stocks. We are witnessing this speculative attack permeating every corner of the financial world.
Everyone is eager to obtain Bitcoin and willing to sell any asset to acquire more Bitcoin. This has always been the core claim of Bitcoin believers - that hard money will ultimately absorb capital like a black hole - and now witnessing this theory being validated globally is truly exciting.
If you think Bitcoin has reached its cycle's peak, remember that Bitcoin still has a long way to go to catch up with the global M2 money supply. Raoul Pal recently pointed out that "89% of Bitcoin's price movement is related to global liquidity".
This means Bitcoin might reach $150,000 in the coming months, but of course, no one has a crystal ball to predict the future. Let's wait and see. Bitcoin is penetrating Wall Street in various new ways, and people are doing their best to accumulate this digital asset. And launching a speculative attack - especially when you own Altcoins - is not a bad choice.
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