“Bitcoin is a stored value natively based off the proof of work chain. It does not generate yield, unlike ETH, unlike Solana, unlike some of these other altcoins.” – 02:32
Thomas Chen, CEO of Function, joins Remy Blaire to discuss the increasing institutional adoption of Bitcoin and the implications this trend has for the cryptocurrency market.
Remy opens the segment by highlighting the growing interest from large institutions and “whales” in Bitcoin as a treasury reserve asset. He notes the concerns raised by Bitcoin maximalists regarding the potential risks associated with these entities, particularly the fear that a mass sell-off during a market downturn could lead to a significant crash. The discussion also touches on the contentious issue of lending Bitcoin for yield, which some believe contradicts the fundamental principle of private ownership.
Thomas shares insights into the current accumulation phase of Bitcoin, revealing that digital asset treasury companies have collectively acquired around $100 billion in BTC, with MicroStrategy at the forefront. He emphasizes the critical question of what these companies will do with their Bitcoin once the accumulation phase concludes and how they can deploy it in a productive manner, akin to cash management.