BlackRock Vs. The Bitcoin Maxis: Is BTC Money Or A Store Of Value?

2023-8-11 15:00

This is an opinion editorial by Christopher Louis Tsu, the CEO of Venom Foundation and an entrepreneur with a background in finance, technology and macroeconomics.

Regardless of one’s own perspective on whether bitcoin is a financial asset or an already-established form of money, one thing is clear: it is up to the market to decide the role of bitcoin. The collective power of invested capital and market liquidity will always be the overriding factor.

A Warm Embrace For Bitcoin, With Limits

Bull market or bear market, Bitcoin is rarely out of the news. But it’s safe to say that 2023 has been a particularly-bubbly year in the BTC news cycle. BlackRock, the world’s biggest asset manager with $9 trillion in assets under management (AUM), has applied for a spot bitcoin ETF, with CEO Larry Fink dubbing BTC “an international asset.” Moreover, several other august financial institutions have thrown their hats into the crypto ring with Bitcoin as their focus.

Many of these entities have bought into the asset’s “digital gold” narrative, pioneered by early maxis and subsequently popularized by MicroStrategy’s Michael Saylor. Instead of focusing on monetary uses, this approach views bitcoin as a long-term investment vehicle, inflation hedge and store of value.

The warm embrace of prominent market players shows just how far bitcoin has come as an asset. There have been many landmarks and staging posts along the way, of course, and some turned out to be less consequential than others.

Two years ago, for instance, Starbucks made it possible to buy coffee with bitcoin through a partnership with digital asset company Bakkt. Some hailed this momentous news while others shrugged. The truth is, I don’t see people flocking to pay for their Ristretto Bianco using their favorite cryptocurrency. The reason is not due to the underlying technology, nor regulations — and it’s definitely not that staff would have a hard time noting a wallet number on the cup. It’s because of the only thing about bitcoin that no one can guarantee a fix for in the future: the volatility of its price.

At the risk of stating the obvious, BTC is still not an instrument for buying coffee — although the ability to swap sats for single serve is nice. What Bitcoin represents is the evolution and adoption of a dynamic digital asset class. Every year, the network effects multiply and former claims of illegitimacy become progressively more preposterous. Oftentimes, an old quote from NYSE Chairman Jeff Sprecher springs to mind: “Somehow bitcoin has lived in a swamp and survived.”

What Is Money, Anyway?

But who are we to say what money is? To paraphrase two quotes from Former Federal Reserve Chairman Alan Greenspan (one of which made me chuckle while the other made me think):

"I understand the history of money. When I get some, it's soon history.”

“It’s no longer possible to clearly define money, with ever expanding financial instruments.”

These comments were both made over 20 years ago, and as the sophistication of financial markets and products continues to expand, defining money and its role in the world is even more nuanced than ever before. You might argue that it doesn’t matter whether bitcoin is viewed as money; the fact that it’s deemed valuable is all that counts.

It could well turn out that both Bitcoin maxis and Wall Street are correct, that bitcoin is both money and a long-term store of value. In the near future, BTC will (most likely) be firmly categorized as an asset class unto itself, and diverse financial products will be derived from its underlying intrinsic value. Thereafter, wholesale investors could leverage the advantages of moving large value with reduced counterparty risk and immediate settlement, all done peer to peer, removing much of the unnecessary friction. Individuals, meanwhile, will continue using bitcoin as they see fit.

But here’s the rub: Although the tech is more or less ready, regulation is not. Across the world, regulation of cryptocurrency, specifically bitcoin as well as the wider infrastructure of blockchain technology, is playing catch up. In some regions, like the United Arab Emirates, Switzerland and Singapore to mention a few, regulators made bold decisions on digital assets supported by blockchains (hat tip to the Abu Dhabi Global Market [ADGM] in my hometown). My prediction is that water will find its own level and participation will grow rapidly as we move forward.

Tying a bow on this letter, I should reiterate that markets are smarter than all of us — and capital goes hand-in-hand with the market. Sovereign nations will always want to be a part of the market economy and earn a piece of that capital pie! Whatever happens, don’t expect the Bitcoin business to die down (much less die) anytime soon.

This is a guest post by Christopher Louis Tsu. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Money ($$$) на Currencies.ru

$ 0.0004099 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -2.27 %
Cегодня L: $0.0004099 - H: $0.0004099
Капитализация $18.807k Rank 99999
Доступно / Всего 45.887m $$$

blackrock financial btc money potential embrace bitcoin-focused

blackrock financial → Результатов: 66


В BlackRock исключили запуск собственного крипто-ETF в ближайшее время

Ввиду «непрозрачной» нормативной базы и проблем с ликвидностью BlackRock не заинтересована в запуске биржевого фонда (ETF) на базе криптовалют. Об этом в интервью Financial News заявил ее руководитель по инвестициям в линейку продуктов iShares и индексы Салим Рамджи.

2021-11-13 18:05


Шведский финтех-стартап Klarna стал самым дорогим в Европе

Шведский стартап Klarna привлек $460 млн в ходе очередного раунда финансирования и стал самым дорогим финтех-стартапом в Европе. Компания достигла оценки в $5,5 млрд. Раунд финансирования возглавила инвестиционная группа Dragoneer из Сан-Франциско.

2019-8-7 11:48


Blackrock CEO: Crypto Still Lacking Legitimacy, Bitcoin ETF Will Have To Wait

Blackrock CEO Larry Fink Still Skeptical On Crypto, Bitcoin ETF While discussion regarding Bitcoin-backed exchange-traded funds (ETFs) have begun to slow, the chief executive of BlackRock, a multinational America-based financial institution, recently claimed that he is hesitant to allow his firm to offer a Bitcoin ETF due to the current state of cryptocurrency markets.

2018-11-2 08:03


Фото:

Bitcoin Price Analysis: Is this a Bullish Reversal or the Puppet Master at Play?

At last some excitement! Yesterday Bitcoin leapt nearly 12% in 24 hours but what’s behind the rally? Could it be the BlackRock and Coinbase news or is it purely fundamental? Market Overview What a rollercoaster ride! Earlier this week Financial News London reported that the world’s largest ETF provider, BlackRock, had cast its gaze to Bitcoin and other cryptocurrencies as potential investments but before the news even had the opportunity to impact cryptocurrency prices, BlackRock CEO, Read More The post Bitcoin Price Analysis: Is this a Bullish Reversal or the Puppet Master at Play? appeared first on Bitcoinist.com.

2018-7-20 05:00


Глава BlaсkRock: Клиенты не заинтересованы в криптовалютных инвестициях

Вчера, 16 июня, мы сообщили о том, что BlackRock, крупнейшая в мире инвестиционная компания, создала рабочую группу по вопросам вложений в криптовалюты. Позже глава компании Ларри Финк в интервью Bloomberg частично опроверг эту информацию.

2018-7-17 09:58


BlackRock Asset Management Firm is Studying Bitcoin & Crypto Space For First Time

World's Biggest BlackRock Looking At Bitcoin From previous comments several months ago that were unusual from legacy investment at the time, the world’s largest asset manager has spoken again. A July 16, 2018 Financial News London report notes that the company is considering bitcoin trading in new ways. The New York asset management company is […]

2018-7-16 19:18


Фото:

BlackRock CEO Contradicts Report of $6 Trillion Interest in Bitcoin (BTC)

Cryptocurrency–’Confusing’ is the only way to characterize the turn of events out of BlackRock in relation to cryptocurrency this morning. While the original report by Financial News (fnlondon) had it that BlackRock, the world’s largest exchange-traded fund (ETF) provider was setting up shop to assess the potential of offering a Bitcoin-related fund, CEO Larry Fink […] The post BlackRock CEO Contradicts Report of $6 Trillion Interest in Bitcoin (BTC) appeared first on Ethereum World News.

2018-7-16 19:14


Инвесткомпания BlackRock присматривается к биткоину

BlackRock — крупнейшая в мире инвестиционная компания по размеру активов под управлением (более $6,288 трлн. ) — создала рабочую группу по вопросам инвестиций в криптовалюты. Об этом Financial News рассказали инсайдеры, пишет Coinspot.

2018-7-16 17:50


Крупнейшая в мире инвестиционная компания BlackRock присматривается к биткоину

BlackRock — крупнейшая в мире инвестиционная компания по размеру активов под управлением (более $6,288 трлн. ) — создала рабочую группу по вопросам инвестиций в криптовалюты. Об этом Financial News рассказали два инсайдера.

2018-7-16 16:20


Фото:

Крупнейший инвестиционный фонд BlackRock изучит криптовалютный рынок

Крупнейшая мировая инвестиционная компания BlackRock с активами более $6 трлн, изучает возможность развития рынка цифровых валют. Об этом пишет Financial News со ссылкой на источники, близкие к руководству компании.

2018-7-16 15:23


Фото:

Инвестиционный гигант BlackRock изучит потенциал криптовалют

Одна из крупнейших инвестиционных компаний мира BlackRock сформировала рабочую группу, задача которой – выяснить, какие выгоды можно получить от вхождения в криптовалютный рынок. Об этом сообщает Financial News со ссылкой на свои источники.

2018-7-16 13:10


Инвестиционный гигант BlackRock создал рабочую группу по изучению рынка криптовалют

Одна из крупнейших в мире инвестиционных компаний BlackRock сформировала рабочую группу по изучению криптовалютного рынка. Об этом пишет Financial News. Команда экспертов из разных областей бизнеса должна будет проанализировать информацию о криптовалютах и блокчейне, а затем выяснить, следует ли BlackRock инвестировать в биткоин-фьючерсы.

2018-7-16 11:53