Bitcoin remains a polarizing asset despite growing institutional support, as highlighted in a recent conversation between Roundtable anchor Rob Nelson and Paul Giordano, Vice President of Digital Asset Management at Marathon Digital. The two discussed the ongoing skepticism surrounding Bitcoin, even as major institutions increasingly embrace it.
Nelson referred to comments from comedian Bill Maher, who labeled Bitcoin a “numbers game” and a scam, expressing frustration over the persistent view of Bitcoin as a lottery. He argued that institutional investment should be a strong indicator of the cryptocurrency’s legitimacy. “If BlackRock and Fidelity putting pension funds into Bitcoin isn’t enough to convince people, what else do they need to see?” Nelson asked, stressing the significance of large financial institutions backing digital assets.
Giordano acknowledged the misunderstanding surrounding Bitcoin’s utility. “It’s not easy to transact,” he said, noting that many still view money as something used in everyday purchases, which Bitcoin isn’t primarily designed for. However, he emphasized that Bitcoin’s value lies in its decentralized and deflationary nature.
The conversation also touched on Bitcoin’s volatility. Giordano explained that investors often consider the energy costs miners incur as a proxy for determining a price floor. As Bitcoin mining becomes more resource-intensive and fewer new coins are generated, the scarcity of Bitcoin could increase its value, provided demand keeps pace. This scarcity has driven billions of dollars into Bitcoin via new exchange-traded funds (ETFs) this year alone.
For the average investor, Giordano highlighted Bitcoin’s unique advantage: its fixed supply. “Every other asset in the world… the supply will grow. Bitcoin has a fixed supply and it cannot be increased, no matter what happens to the price,” he said, underscoring the cryptocurrency’s appeal as an inflation hedge.
Giordano concluded by emphasizing Bitcoin’s potential to protect against inflation. “We see inflation everywhere in our lives, but Bitcoin shields us from that. To me, that’s its greatest advantage,” he stated, reinforcing Bitcoin’s role as a long-term store of value amid economic uncertainty.
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