In a recent interview, Dave Weisberger, CEO of CoinRoutes, shared his views on the future of Bitcoin and its role as a global store of value. Contrary to some predictions of a sudden surge to $500k, Weisberger believes that Bitcoin’s ascent will be more incremental, beginning with adoption by countries on the global periphery.
Weisberger explains that the banking sector, particularly regional banks, is currently facing numerous challenges, including a decline in monetary incentives to hold money in banks and significant exposure to commercial real estate-backed loans. He asserts that regional banks are crucial to the economy as they finance small and medium-sized businesses, so their struggles could have a broad impact.
The Federal Reserve’s actions will play a role in how the banking sector fares, with Weisberger highlighting the potential need for the Federal Reserve to guarantee all bank deposits. He also discusses the differences between big money center banks and regional banks, with the latter more at risk of failing due to a lack of perceived government backing and their exposure to commercial real estate.
Addressing the possibility of Bitcoin becoming a global store of value, Weisberger notes that this would require a 20-fold increase in market cap, equaling that of gold. However, he envisions a more gradual process, with governments allowing its growth over time. He suggests that countries on the global periphery will likely adopt Bitcoin first.
Financial institutions such as Citibank and JP Morgan have been hesitant to adopt Bitcoin, primarily due to regulatory pressure and compliance issues. However, Weisberger sees potential for asset managers to begin incorporating Bitcoin into their clients’ portfolios, a trend already emerging outside the US.
As Bitcoin continues to grow in popularity, Weisberger believes it has the potential to eat into gold’s monetary value and become a store of value. He also highlights the importance of hash rate in predicting the health and growth of the Bitcoin network and, ultimately, its price.
Looking ahead, Weisberger predicts that Bitcoin will delink from risk assets and the real economy’s contraction. He believes that as monetary spigots open again, new investors will drive the price up. While a recession could impact Bitcoin, Weisberger contends that its inherent value will help prevent a significant drop, especially as the money printer narrative begins to dominate.
Dave Weisberger offers a cautiously optimistic view of Bitcoin’s potential as a global store of value. Instead of a sudden moonshot to $500k, he anticipates incremental growth as adoption expands. As the financial landscape continues to evolve, it will be interesting to see how Bitcoin’s role in the global economy develops.