According to Yat Siu, the founder of Animoca Brands, a $6 billion firm, Bitcoin will no longer be solely regarded as a store of value and speculative asset in the future, but will instead become a symbol of status, eventually reaching nine figures in value. Siu drew a comparison between Bitcoin’s future status and the current market for non-fungible tokens (NFTs), in which wealthy investors are willing to spend millions on NFTs without any utility, simply for the sake of achieving a certain status within the crypto community.
Bitcoin has experienced its most successful year to date, reaching a new record high. This has led to bullish predictions for the top cryptocurrency, with Siu being one of the most optimistic. He predicts that Bitcoin will reach $1 million in the near future as it transitions from being primarily a store of value.
At present, Bitcoin is trading at $64,225, experiencing a 4.8% drop in the past day, along with other cryptocurrencies such as Ethereum (down 7%), XRP and MATIC (down 9.2%), and Ethereum Classic (down 10.75%).
Despite short-term volatility, Siu remains confident that Bitcoin will eventually reach nine figures. Siu, who is based in Hong Kong, is the founder and chairman of the board at Animoca Brands, a major player in the Web3 and metaverse space, responsible for successful projects like The Sandbox. The company has also made investments in Axie Infinity, OpenSea, and other ventures within the crypto industry.
In an interview with Altcoin Daily, Siu expressed his belief that Bitcoin breaking past $1 million is entirely possible. However, in order for this to happen, Bitcoin’s role will need to evolve from its current status. Siu explained that while Bitcoin’s potential as a store of value has a limit, its value as a status symbol is not tied to utility and can skyrocket without any significant upgrades or developments. In fact, a status symbol is even more desirable to its target audience when its price is extremely high and unattainable for the general public.
Siu pointed out NFTs as an example of tokens that have become status symbols within the crypto world. While NFTs now often have utility, such as representing ownership of an asset, they were initially launched purely as symbols of status. Owning a Bored Ape Yacht Club NFT, for instance, puts individuals in the same league as celebrities like Snoop Dogg, Tom Brady, Madonna, and Jimmy Fallon.
Siu further stated that Bitcoin’s mathematical scarcity means that owning one automatically grants a sense of scarcity and exclusivity.
In recent years, Bitcoin’s dominance in the cryptocurrency market has significantly declined. In early 2017, it held 85% of the market share, but now it stands at 54.4%, having risen from 38% in late 2022. This decline can be attributed to the rise of alternative coins like Solana, BNB, and XRP, as well as the continued prevalence of stablecoins.
Siu acknowledged this decrease in market share, noting that the narrative in the past few years has largely focused on NFTs, gaming, and other tokens like Ethereum and Solana. However, he believes that the rise of these alternative coins is actually driving people back to Bitcoin, as they seek to own a part of the original blockchain network.
He added that the growth of other blockchains is leading people to the original blockchain, Bitcoin, as they desire to possess a piece of its history.
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