Macro Commentary on Bitcoin's Valuation Extremes and Utility

25 days ago

"However the key issue is that if Bitcoin ever gets to a million or even a billion nobody will be happy about it because however you look at it Bitcoin is just a gambling tool. It's a gambling tool that consumes a lot of energy and you compare it with all other financial transactions, the friction there, the cost there, it's cheaper with other tools and likely those tools will get cheaper and cheaper. However, this might get more expensive and more expensive and then again if it is the ultimate value then nobody transacts with the ultimate value. You hold that value but for it to have value over time it should be also used."

The speaker questions Bitcoin's viability as a reliable currency, arguing that even if its price reaches astronomical levels, its fundamental use as a transactional asset is compromised by high energy consumption and inherent friction. This macro commentary suggests that extreme valuations may indicate systemic financial breakdowns rather than genuine long-term value.

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