Real-World Challenges Pose Threats to Bitcoin's Next Bull Run – Here's What You Need to Know
Bitcoin (BTC) faces a myriad of real-world obstacles on its journey to the next bull run.
As the world's largest cryptocurrency struggles to regain the heights it reached in 2021, experts argue that Bitcoin needs to address several challenges before expecting a major rally.
One immediate hurdle for Bitcoin is its macroeconomic predicament.
In a rising interest rate environment, investors tend to move towards risk-free assets that provide reliable yields.
Comparatively, Bitcoin lacks the intrinsic value and cash flow generation potential to compete with Treasury bills or cash, Sam Lee from SVRN Asset Management told Axios in a recent interview.
"You can own T-bills or just own cash and get a 5% yield," Lee said, noting that this lowers the allure of Bitcoin.
Aside from macroeconomic headwinds, Bitcoin is also facing the need to prove its use case beyond being an investment vehicle.
Kurt Wuckert Jr., Chief Bitcoin Historian at CoinGeek, noted that Bitcoin is a highly disruptive technology but mentioned that the majority of people are primarily interested in holding the asset and hoping for its price appreciation instead of actively utilizing it.
Lee also echoed this point of view, likening Bitcoin and Ethereum (ETH) to digital pet rocks, which shows the lack of emphasis on utilizing their functionality.
"You see the cynicism of Crypto Twitter," Lee said, callingcrypto"a giant speculative metagame." People aren't talking about how to use it or tap its functionality. "It's — what's the next narrative."
Despite these challenges, Bitcoin's market capitalization currently sits at around $513 billion, which is 500 times higher than its value a decade ago.
Furthermore, Bitcoin has also proven media proclamations regarding its demise
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