Bitcoin: Between Prejudices and Institutional Trust

Bitcoin remains at the center of heated debates, particularly concerning its acceptance by institutional investors. A recent discussion about cryptocurrencies highlights the ongoing polarization in the perception of Bitcoin. Moderator Rob Nelson engaged with Paul Giordano, Vice President of Digital Asset Management at Marathon Digital, regarding the persistent skepticism towards Bitcoin. Nelson addressed comedian Bill Maher's critical comments, who labeled Bitcoin a "numbers game" and a scam, while Giordano explained the reasons for these widespread misunderstandings. Nelson expressed his frustration with the view that Bitcoin is merely a lottery and questioned what else is needed to convince people of its legitimacy, especially after industry giants like BlackRock and Fidelity have invested in digital assets. These investments underscore the growing significance of Bitcoin in the institutional sector. Paul Giordano explained the difficulties many people have in understanding the true value of Bitcoin. He pointed out that, while Bitcoin does not function as a conventional currency, it holds immense value due to its decentralized structure. Despite the volatility of Bitcoin's price, which can constantly change, investors often view the energy costs of miners as an indicator of a rational minimum price. A key feature of Bitcoin, which Giordano noted is often overlooked, is its limited availability. Unlike other assets whose supply can grow, Bitcoin's supply remains fixed regardless of price changes. This makes Bitcoin particularly interesting in an inflation-driven economic environment, Giordano said, because it serves as a hedge against inflation and thus offers a significant advantage.