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In the recent times, Bitcoin has fallen about 50% from its ATH with the concerns over the lack of sustainability.
But what is the larger picture here really? And are these smaller issues seeking to derail a train that has already gone past several narratives on its own and is now poised to evolve into something else altogether, for eg, Web 3.0?
CLEAN ENERGY
If you examine Bitcoin as a whole, the mining activity is really a mining for money. Whether you call money a concept or a construct, whatever, it is money. A medium of exchange. But a major part of this industry has been using dirty energy and being so wasteful in parts of the world that the practice of Bitcoin mining itself has been called into question.
As the industry turns to clean and green energy, the narrative will shift back to what has already take off for crypto as a whole, not just Bitcoin. And by the way, there will be a massive influx of investment into green tech too, which is a win-win for every one.
Institutional investors and the mainstream adoption
Let’s think about it.
While the short-term issues here on sustainability have slowed adoption, this is fast waning as European companies that have to abide by the ESG equation are already purchasing Bitcoin directly from miners who are not from China.
Recently, it was revealed also by Raoul Pal that sovereign wealth fund Temasek has been buying Bitcoin too
(Sources: https://podcasts.apple.com/us/podcast/crypto-nfts-and-blockchain-ft-raoul-pal/id1498802610?i=1000514335042
https://coingape.com/306-billion-sovereign-wealth-fund-temasek-buying-bitcoin-since-2018-raoul-pal/)
In fact, in a Financial Times report just today, it is revealed that Singapore is welcoming crypto companies with a "red carpet". BINANCE founder is already in the city state and it is advertising heavily for jobs. The Singapore Exchange has also recently introduced two cryptocurrency indices. And to delight Ethereum fans in this, Vitalik Buterin, is also based in Singapore! In fact, if you want more big names, billionaire co-founder Jihan Wu, of Chinese crypto group Bitmain, has launched a crypto start-up in Singapore.
Source: https://www.ft.com/content/f74d4e60-93b5-46ef-8b3f-71754cbc8a26
With such heavy institutional involvement, and the debasement of fiat, the mid wave and eventual late adopters will come in within the next few years. By then, PlanB’s achievement of the S2F model would have already taken place and a whole new world would have already begun.
Yours
Chief Editor
BBA Market Perspectives
