Renowned Bitcoin analyst and investor Willy Woo has called Bitcoin the “perfect asset for the next 1,000 years.” However, he warned that the cryptocurrency will not surpass the U.S. dollar or gold unless it attracts significantly more capital.
“You can’t change the world if this monetary asset – which I believe is the perfect asset for the next thousand years – doesn’t grow large enough and attract enough capital to compete with the U.S. dollar,” Woo said during his Sunday presentation at the Baltic Honeybadger conference in Riga, Latvia.
Currently, Bitcoin’s market capitalization stands at $2.42 trillion, less than 11% of gold’s value ($23 trillion). The U.S. dollar money supply is approximately $21.9 trillion.
Barriers to Becoming a Global Reserve Asset
Woo sees two main obstacles preventing Bitcoin from becoming the world’s reserve asset:
🔹 Debt structure of Bitcoin companies – While BTC management firms are accelerating adoption, little is known about how they structure their debt. Woo warns that weaker entities may “explode,” causing massive investor losses.
🔹 Risk of a new bubble – Woo says some “altcoin sovereign bonds” are already engaging in risky practices that could lead to another crypto bubble.
Woo also raised concerns about what could happen during a major correction or bear market:
“Who’s swimming naked and how many coins will come back to the market?”
Danger of Government Interference
Another risk Woo sees is that investors often choose spot Bitcoin ETFs or institutional custody services like Coinbase Custody instead of self-custody. This concentrates large amounts of BTC within reach of nation-states, increasing the risk of a government-led “rug pull.”
“Big-money investors aren’t setting up self-custody. They opt for ETFs or companies like MicroStrategy. Pension funds rely on institutional solutions. This opens the floodgates for capital but also creates geopolitical risks,” Woo warned.
Debating With Industry Leaders
Woo discussed the topic with other experts – Adam Back (CEO of Blockstream), Danny Knowles (host of What Bitcoin Did), analyst Leon Wankum, and Max Kei (CEO of Debifi).
Kei predicts that self-custody of BTC will spread gradually – starting with custodians and companies, then moving to entrepreneurs, and eventually to everyday individuals.
Why Companies Remain Key
Despite Woo’s concerns, Adam Back believes corporations are the most logical starting point for mass Bitcoin adoption. He argues that companies should compare their expected returns with “Bitcoin’s return,” and if they can’t outperform BTC, they should buy it instead.
“Businesses with strong fundamentals can thrive even more if they integrate Bitcoin. It doesn’t have to be just speculation,” Back said.
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