After nearly a decade of navigating Bitcoin and the crypto industry, you would think you've seen everything that could happen, but occasionally new situations arise that leave you astounded. This is exactly how I felt when I watched a recent talk by Cardano founder Charles Hoskinson yesterday. Hoskinson spoke about selling altcoins from the Cardano treasury to buy Bitcoin.
This video is eye-opening for three reasons. First, Hoskinson essentially admits that his altcoins cannot compete with Bitcoin in the long run. The only way to create long-term economic value is to sell altcoin assets and buy Bitcoin. This seems to indicate that altcoin founders have realized that Bitcoin will never disappear.
Secondly, Hoskinson seems to understand that Bitcoin treasury companies are launching speculative attacks on Bitcoin. These companies buy Bitcoin by selling stocks, so altcoin foundations also have the capability to sell altcoins in exchange for Bitcoin. This 'speculative attack' theory, promoted by Pierre Rochard in 2014, has become one of the most important concepts driving Bitcoin adoption in recent years.
The third point may be the most intriguing—Bitcoin treasury companies are performing so well that they cannot be ignored. Take Metaplanet as an example; Simon Gerovich, Dylan LeClair, and their team created one of the best-performing stocks globally. In just over a year, the company's Bitcoin holdings on its balance sheet grew from zero to 10,000 coins. Such a pace of development is astonishing.
Imagine you currently hold hundreds of millions of dollars in altcoins, only to watch them continuously devalue in front of Bitcoin. Naturally, you would start to consider that selling altcoins to invest in Bitcoin might achieve asset appreciation. This is no different from selling depreciating dollars or stocks of publicly traded companies. We are witnessing this speculative attack permeate every corner of the financial world.
Everyone is eager to acquire Bitcoin and is willing to sell any type of asset to exchange for more Bitcoin. This has always been the core claim of Bitcoin believers—that hard money will eventually absorb capital like a black hole. Witnessing this theory come to fruition globally today is truly exciting.
If you think Bitcoin is nearing its peak in this cycle, remember: Bitcoin still has a long way to go to catch up with the global M2 money supply. Raoul Pal recently pointed out that '89% of Bitcoin's price movements are related to global liquidity.'
This implies that Bitcoin may reach the $150,000 mark in the coming months, but after all, no one has a crystal ball to predict the future, so let’s wait and see. Bitcoin is infiltrating Wall Street in various new ways, and people are doing everything they can to hoard this digital asset. Launching speculative attacks—especially when you hold altcoins—can be a wise choice.
