Michael Saylor highlights Bitcoin’s historical place
MicroStrategy co-founder Michael Saylor recently emphasized on X that "no asset can beat Bitcoin," once again proving Bitcoin's dominance among various assets. According to the data he shared, Bitcoin’s cumulative return rate since 2011 has reached 21,372,237%, far exceeding the return rate of other assets such as gold and technology stocks. Bitcoin also outperformed all other assets in terms of annualized return, with an average annual return of 148%. However, Bitcoin's price performance has been relatively lackluster during this halving cycle, currently lagging MicroStrategy (MSTR) stock and several mining stocks.
Source: Charlie Bilello Comparison of the return rates of Bitcoin and various assets
With the launch of a Bitcoin exchange-traded fund (ETF) in early 2024, the cryptocurrency’s price reached an all-time high of $73,737 in March. This breakthrough shows that Bitcoin has surpassed the peak of the previous cycle before the halving, which makes this bull run particularly special.
However, Bitcoin price is currently down 12.73% from its all-time high, and due to the lack of strong bull market catalysts, it is unclear whether it can return to the high in the short term. Earlier this week, Bitcoin prices fell below $64,000 for the first time in more than a month. Bitcoin’s bull run momentum has failed to recover amid massive outflows from cryptocurrency investment products and ongoing inflationary pressures. However, some commentators such as Peter Brandt and Tom Lee still believe that Bitcoin could reach $150,000 during this cycle. (This data is subject to update)
Block CEO Jack Dorsey says Bitcoin can replace the U.S. dollar
Jack Dorsey, founder and CEO of Block Inc., spoke highly of the potential of Bitcoin and pointed out its importance in the global monetary system. Dorsey called Bitcoin a "permissionless free currency" and believed that Bitcoin has the ability to supplement or replace the U.S. dollar.
The U.S. dollar currently controls a large portion of global markets, a position that BRICS group members are challenging. Unlike Bitcoin, using U.S. dollars requires permission from governments and banks. Dorsey acknowledged that such controls, while preventing fraud, attacks and other criminal activity, also come with limitations on freedom.
Bitcoin provides a freedom that solves the problems of traditional fiat currencies, especially the U.S. dollar. Many important players in the market have recognized Bitcoin’s ability to serve as a hedge against ongoing inflationary pressures on the U.S. economy. Even amid economic turmoil in Egypt, Hunter Horsley, CEO of Bitcoin ETF issuer Bitwise, highlighted Bitcoin’s potential as a hedging tool. During that time, the Egyptian pound hit a record low against the U.S. dollar, falling below 50 pounds to the dollar.
"There are a lot of reasons for people to buy Bitcoin," Horsley said. "This is a scenario that everyone wants to avoid. But the reality is that people who own Bitcoin do much better in terms of U.S. dollars than people who don't have Bitcoin."
For the U.S., the University of Michigan's consumer confidence and five-year inflation expectations data turned positive last month. Meanwhile, consumer confidence in the United States hit 69.1, while one-year inflation expectations fell to 3.3% from 3.5% and five-year inflation expectations remained at 3%, down from 3.1% previously. These economic conditions have laid a solid foundation for Bitcoin as a reserve asset around the world.
Naval Ravikant praises Bitcoin as the true store of value
In addition, Naval Ravikant, a well-known venture capitalist and early investor in Twitter, also posted on Ravikant pointed out that Bitcoin’s status as a store of value is unshakable. This view has sparked widespread discussion in the crypto community.
Source: X Naval Ravikant says Bitcoin is the only true “store of value”
Former Kraken head of growth Dan Held emphasized that other cryptocurrencies are just testnets for Bitcoin, and that potential Bitcoin second-layer solutions will solve all these problems. Swan CEO Cory Klippsten is also convinced that Bitcoin will become the medium of exchange.
In contrast, some critics of Bitcoin argue that most other cryptocurrencies are still in their infancy and cannot compare to Bitcoin. However, Ravikant believes that cryptocurrencies can solve many problems and criticized regulators’ crackdown on blockchain. He pointed out that Bitcoin is the true store of value, while other cryptocurrencies are competing to become the medium of exchange.
Bitcoin’s future outlook
All in all, Bitcoin’s dominance and potential are unquestionable. As more institutions and individual investors recognize the value of Bitcoin, it is expected to replace the US dollar and become an important member of the global currency system in the future. This shift will have profound consequences for the global economy and financial markets. The support of leaders in the technology and investment communities such as Jack Dorsey and Naval Ravikant makes it increasingly possible for Bitcoin to take a place in the global monetary system of the future.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
