How bitcoin blends technology, currency, and asset in one

The cryptocurrency market is awash with debates about bitcoin’s evolution and future prospects. In a recent discussion, Roundtable host Rob Nelson and Simon Baksys, VP of Business Development at LayerZero Labs, offered insightful perspectives on bitcoin’s multifaceted nature and trajectory.

Often referred to as “digital gold,” Bitcoin has evolved from a revolutionary concept to a robust store of value. Rob Nelson emphasized this unique aspect by emphasizing Bitcoin’s triple identity: a finite asset, a currency, and a technology. “Bitcoin is a currency as well as a technology and an asset in the traditional sense, it’s kind of three in one,” he said.

Simon Baksys echoed this sentiment, noting that early adopters were captivated by the promise and technology behind bitcoin, rather than just its financial potential. “It wasn’t because I could buy bitcoin and it’s now worth $65,000… it was the promise of the technology. It was the promise of peer-to-peer payments, the speed of cross-border remittances, not spending two or three days on a money transfer,” he said.

This foundation set the stage for bitcoin’s evolution. Initially, bitcoin’s value was rooted in its technological promise. Over time, innovations like stablecoins have increased its utility by making peer-to-peer and cross-border payments more efficient. This has solidified bitcoin’s role as a store of value.

Looking ahead, Nelson specifically inquired about the future in terms of price and volatility. Baksys predicted a gradual decline in volatility as adoption increases and more institutional players enter the market. He highlighted the significant increase in bitcoin held in ETFs, which now sit at over one million bitcoins, equivalent to about $65 billion. This institutional participation is a far cry from what it was just a year ago.

Baksys predicts that as the industry matures, the extreme price swings seen in the past will diminish. “I think we will see less volatility… which is generally a good thing. It means we have reached a level of maturity in the industry,” he said.