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Is Bitcoin a ‘perfect asset’ with a catch? Willy Woo has this to say about the risk…
Institutions are flocking to Bitcoin, and it’s not hard to see why. The digital currency has been surging in popularity, with institutional investors pouring billions of dollars into the market. However, renowned analyst Willy Woo believes that such a rapid pace could have some unforeseen consequences.
Woo described Bitcoin as “the perfect asset” for the next millennium, but he warned that this description comes with a catch. According to him, Bitcoin cannot rival traditional stores of value like the U.S. dollar and gold without a substantial influx of capital.
In an address at the Baltic Honeybadger conference in Riga, Latvia, Woo emphasized that institutions need massive amounts of capital to take part in the decentralized ecosystem. This is crucial because Bitcoin can’t be a ‘perfect asset’ if it doesn’t grow as big as traditional markets.
Woo’s concerns are rooted in the surge of Spot Bitcoin ETFs and the growing reliance on pension funds and corporate treasuries. He believes that such an influx of capital would lead to a centralized control, making the decentralized nature of the cryptocurrency vulnerable to state-level interference.
The fact that deep-pocketed investors still prefer these channels over self-custody has sparked concerns about the potential risks associated with this development. Woo warned that if Bitcoin continues down its current trajectory, it could be more susceptible to state interference, which could have significant implications for the decentralized ecosystem.
Despite this risk, Woo emphasized that the asset is not a ‘perfect’ without capital influx.
Source: ambcrypto.com
