Ex-CEO of Twitter, Jack Dorsey, has claimed he is confident in Bitcoin despite the recent price instability of the flagship cryptocurrency. Jack was called out on Twitter by Tom Philpot on Friday for not tweeting about Bitcoin in recent times.
According to Tom, Jack has directed all his tweeting energy to American rapper Kendrick Lamar rather than focusing on Bitcoin. Jack responded to the accusation, stating that he doesn’t watch the price, knowing that Bitcoin will gain value in the long term.
The American billionaire is a Bitcoin maximalist, one time tweeting that Bitcoin will replace the dollar. While Jack has not revealed the exact amount of Bitcoin he owns, he claims he owns “enough BTC” and sees Bitcoin as a resilient and principled asset.
Bitcoin’s Rise and Fall
Since the inception of Bitcoin in 2009, the leading crypto-asset has experienced several crashes and bounce-backs. Bitcoin was first valued at $0, but a decade of growth has boosted the asset’s value to as high as $69,000 before eventually falling by almost 60%.
Bitcoin is currently trading at around $29K, and it seems the bearish season is far from over. Despite this intense crash, historical price action supports Jack Dorsey’s view of the crypto asset, and the volatile asset has always recovered from extreme dumps.
The maximum supply of Bitcoin (21 million) has also triggered investors to attach a high value to the asset. Many Bitcoin maximalists believe that when all the Bitcoin is eventually mined, the value of the cryptocurrency will go as high as $1 million per BTC due to scarcity.
This analysis is valid if demand for Bitcoin continues to soar. However, a limited supply alone for BTC is not enough to drive its price so high. With the invention of crypto assets with better use cases than Bitcoin’s, crypto investors may turn from Bitcoin to its alternatives like Ethereum and other cryptocurrencies with a lower market capitalization.
