Bitcoin, the largest crypto token, has come a long way since its inception. The perception of these digital assets has changed from a pessimistic to an optimistic one. At press time, it was trading just below the $ 48,000 mark.
Nonetheless, Bitcoin has suffered significant volatility in the past. Speculation, risks, and regulations in particular have contributed to this.
Biggest risks involved
Crypto veteran Anthony Pompliano recently discussed the flagship token on a podcast and introduced his hypothetical long-term bear case. In the interview, he mainly highlighted five important FUDs. He noted that contrary to what Bitcoin proponents believe, the coin will not turn into currency.
Hence, this will drastically affect the addressable market that the coin will hold in the future. He added,
“The highest it can grow to is gold, which is essentially a store of value. [It] isn’t really used to shopping for things on a daily basis, so there may be more perks, but it’s kind of a limited perk. “
BTC vs gold has been an ongoing long-term debate. Even if the token recorded impressive runs against the precious metal, the latter is still way ahead in terms of valuation. The graphic below highlights the same,
Bitcoin in danger?
“The second is that at some point we will find out who Satoshi is, and if we find out who Satoshi is, that will be a bad person and we will not want to know who it is and as if there will be a negative A hit.”
Meanwhile, the real world use cases of BTC such as cross-border payments and other related matters were also discussed.
“It’s slow. It’s expensive. There are some kind of technical problems with it.”
Moving on, crypto regulations have played a role in putting pressure on their value. The uncertainty surrounding the token prompted interested people to deviate. According to Pompliano, the market should be regulated, taxed and eventually closed by banning it.
Eventually, he identified another particular risk that could undermine the integrity of the Bitcoin network. According to Pompliano
“The best argument anyone can make and what I think is the greatest risk to Bitcoin – it really annoys the critics because it has nothing to do with anything outside.”
He also mentioned that such an ecosystem has to go through a development process – methodically with filters and security checks. However, if there was a bug in the code, it would be like shooting yourself in the foot.
Still, it remained bullish for the longer term regardless of the FUDs in the market.
“The reason Bitcoin is so attractive is that I don’t really need the best return. I don’t have to be greedy. I want the thing that has a great economic return, but I also know that there will be in 50 years. “
Nobody, including the government, could possibly stop the existence of crypto. “Not even a nuclear war can end it,” he said. In addition, Tesla boss and billionaire Elon Musk had similar thoughts on the subject at the Code Conference.
“I think it is not possible to destroy crypto, but it is possible for governments to slow down its development.”
While Mike Alfred – the CEO of BrightScope & Digital Assets Data tweeted:
The biggest risk is not that #Bitcoin goes to zero, but that you sell your #Bitcoin too early.
– Mike Alfred (@mikealfred) October 2, 2021
So far, Bitcoin has recovered a bit but is still below $ 48,000. Still, its market cap at press time is just under $ 900 billion, and its dominance over alternative coins is 42.5%.