In one interview with economist Marc Friedrich, CEO of MicroStrategy, Michael Saylor said that Bitcoin is not the same as it was in 2015 or 2017. According to Saylor The arguments against Bitcoin (BTC) that were relevant four years ago are no longer applicable.
How is Bitcoin like Lebron?
Bitcoin has grown exponentially since its peak in 2017 in terms of infrastructure, fundamentals and adoption. In the past year, institutions have increasingly started to view BTC as a store of value and a hedge against inflation.
In 2017 Critics said Bitcoin is too volatile and there is a risk that its price will drop to zero because it is an asset that has just been born. Saylor stressed that these arguments are less relevant now as BTC has evolved significantly over the past three years.
Saylor emphasized that Lebron James played basketball from ages 8 to 18 but grew to become one of the greatest of all time. He said that Bitcoin was going through a similar period, stating:
“I also thought it was important to directly address the fears and fears of the original Bitcoin and the crypto community that has all these tropes, like, ‘Oh, it’s risky, it’s volatile, it could go to zero’, and they still live in the timeframe of 2012, 2015 and 2017. And I want to tell you that Lebron James played basketball between the ages of 9 and 18 and was talented but unpredictable and volatile, but then he grew up and aged from 18 to 28 years old he destroyed everything. the world and everything that stood in his way. “
Turn on: https://t.co/L9PMOtdcKR pic.twitter.com/2itjTLaZAh
– marrrrrrc friedrich (@ marcfriedrich7) 3rd December 2020
One of the most important changes Bitcoin has seen since 2017 is its market structure. Three years ago, retail platforms like BitMEX were the dominant players in the derivatives market.
As Cointelegraph reported, Institutional platforms like the Chicago Mercantil Exchange (CME) have consistently processed similar volumes to the major exchanges that focus on retailers. As of today, December 4th, 2020, CME’s BTC futures market has an open interest of $ 1.14 billion, which is higher than that of Binance, Bybit, Huobi and BitMEX futures.
On-chain data is also displayed A significant increase in institutional growth due to large transactions on the Bitcoin blockchain.
Large BTC transactions have doubled this year
According to the data from IntoTheBlock, The number of transactions valued at more than $ 100,000 has doubled in the last year. According to analysts, this is a sign of increased institutional activity on the Bitcoin blockchain.
Given the remarkable change in volume trends and on-chain data over the past 12 months, analysts have written this Bitcoin is attracting great institutional interest. they write::
“The number of transactions of more than USD 100,000 registered daily in the Bitcoin blockchain has more than doubled since last year. In addition, the total volume transferred in these has 6 times more transactions in the Bitcoin blockchain the same interval recorded even greater growth “.
Based on a variety of factors including the fact that there is significant institutional involvement in the Bitcoin market, lInvestors like Saylor remain confident that BTC will become an established store of value and that this will improve perceptions among mainstream investors.