Bitcoin Instigates Institutional 'Gold Rush' Aided by Spot Bitcoin ETFs and AI
Summary:
Michael Saylor, Chairman of MicroStrategy, opines that the Bitcoin era is experiencing an institutional "gold rush", as Spot Bitcoin ETFs and increasing artificial intelligence demands drive its adoption. Predicting that by 2035, 99% of Bitcoin will have been mined, marking the beginning of a growth phase, Saylor foresees greater adoption as banks and wirehouses facilitate Bitcoin trades. The discussion further covers the vital role of Bitcoin in online security during the AI revolution and anticipation of lesser environmental concerns surrounding Bitcoin. The adoption of Bitcoin by nation-states was also discussed, along with the shortcomings of restrictions on Bitcoin.
Bitcoin's onset of an institutional "gold rush" that's likely to last for the next decade has been prompted by Spot Bitcoin ETFs, this growth is anticipated to get a further boost from autonomous artificial intelligence; said Michael Saylor, chairman of MicroStrategy. Speaking at the Bitcoin Atlantis conference on 1st of March, Saylor discussed his views that after the introduction of spot Bitcoin ETFs, Bitcoin is seeing a phase of increased adoption by institutions.
Michael Saylor stated that we are now experiencing the era of Bitcoin gold rush, which started from January, 2024 and is predicted to continue till November, 2034. According to him, by 2035, all but 1% of Bitcoins will have been mined and that would mark the beginning of its growth phase. It is important to note that at present, about 93.5% of the total 21 million Bitcoins that will ever exist, have already been mined, as per records by Buy Bitcoin Worldwide.
Neil Jacobs (@NeilJacobs) tweeted that we are currently in the era of Bitcoin Gold Rush according to Michael Saylor, this phase will end only when 99% of all Bitcoin will be mined by the end of 2034.
Currently, spot Bitcoin ETFs are mainly serving as a dissemination conduit to only about 10-20% of interested people, but Saylor anticipates this share to swell to 100% when banking institutions and institutional wirehouses begin enabling Bitcoin trades. He strongly believes that practically all banks will ultimately be compelled to safeguard Bitcoin as their prime clients will demand for it, causing the resistance to decline and Bitcoin surpassing gold and thus, trading more than the S&P index ETFs.
In the face of threats from adversarial elements attempting to take advantage of the AI revolution, Saylor also sees Bitcoin playing a vital role for ensuring online security. For validating, timestamping, or cryptographically signing messages and documents, Bitcoin will be needed. "AI will drive demand for Bitcoin in this way", Saylor further added. Considering the energy requirements of autonomous AI, Bitcoin can provide the necessary digital energy, implying more demand for Bitcoin.
Even with concerns surrounding the environmental impact of Bitcoin, Saylor anticipates that these issues will fade overtime. He presented an argument that as Bitcoin's energy efficiency keeps enhancing, political and environmental activists are now beginning to divert their scrutiny towards AI's energy requirements.
In the same conversation, investment strategist and Bitcoin commentator Lyn Alden spoke about how the embracement of Bitcoin by nation-states may lead to an increase in demand. The adoption of Bitcoin helps create financial hubs, therefore attracting long-term investments.
Lyn Alden postulated that some countries have initiated a "short-term thinking" approach by imposing restrictions or outright bans on Bitcoin out of fear of it threatening their own currencies. This narrow mindset, though, ends up costing them potential investment opportunities. Citing the example of Nigeria, despite a ban on Bitcoin and cryptocurrencies, the nation now holds the highest peer-to-peer market volumes globally.
Renowned investment manager and Bitcoin advocate, Lawrence Lepard, remarked that monetary restrictions imposed by dictatorial regimes usually tend to expedite adoption. Capital controls and other restrictive measures usually fail to solve problems, according to Alden. Bitcoin as a tool offers numerous ways to circumvent these problems.
Published At
3/4/2024 7:40:04 AM
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