A new report by Electric Capital makes a compelling case that the current fiscal and monetary environment is the perfect storm for programmable money like Bitcoin.
An excerpt from the group’s latest newsletter was recently published here.
Bitcoin’s reaction to the broader market has been promising thus far. For much of the past three years, Bitcoin has stayed within the bounds of financial markets and has been heavily correlated with mainstream financial assets.
However, the past few months have seen a soft decoupling with Bitcoin frankly ‘going its own way.’ This is promising given the current monetary and fiscal environment, according to Electric Capital.
The group concludes that Bitcoin ‘may already be a store of value versus other currencies.’ It is only relative to USD that Bitcoin is currently not a store of value, but it nonetheless shows potential.
For Electric Capital, the case for Bitcoin relies on three main areas: the leading cryptocurrency must possess (1) utility, (2) trust, and (3) adoption. According to the report, Bitcoin possesses all three of these characteristics.
The report also documents the collapse of trust in existing systems of government, media, financial markets, and so on. and concludes that a cryptographic system like Bitcoin could fulfill this trust gap.
Electric Capital’s report ultimately bears resemblance to one put out by famous hedge fund head Paul Tudor Jones this month. Jones also made a bullish case for Bitcoin with many of these same arguments, concluding that Bitcoin’s position is strong amid the current monetary and fiscal environment.
Although short-term trends are difficult to predict, ultimately the report makes a compelling case for Bitcoin’s long-term longevity.