According to Yat Siu, the CEO of Animoca Brands, a $6 billion firm, Bitcoin will transform from being solely a store of value and speculative asset to becoming a status symbol in the future. Siu compared the future of Bitcoin to the current trend of NFTs, where wealthy investors are willing to spend millions on NFTs with no practical use, simply to gain status within the crypto community.
Bitcoin has experienced its most successful year to date, reaching a new all-time high. This has led to numerous bullish predictions for the leading cryptocurrency, with Siu being one of the most optimistic. Siu believes that Bitcoin will reach $1 million in the near future as it evolves from its current role as a store of value.
Currently trading at $64,225, Bitcoin has experienced a 4.8% decrease in the past day, following a wider market downturn. Other cryptocurrencies such as ETH, XRP, MATIC, and Ethereum Classic have also seen significant losses.
Despite short-term volatility, Siu remains confident that Bitcoin will eventually reach a nine-figure valuation. Siu, who is based in Hong Kong and is the founder and chairman of Animoca Brands, believes that Bitcoin will break past $1 million. However, for this to happen, Bitcoin’s role will need to evolve from being solely a store of value.
Siu explained that while Bitcoin’s potential as a store of value has limitations, its value as a status symbol is not tied to its utility and can skyrocket without significant upgrades or developments. In fact, a status symbol becomes more desirable when its price is extremely high and unattainable for the masses.
Siu highlighted NFTs as tokens that have already become status symbols in the crypto universe. Although NFTs now have utility, such as representing ownership of an asset, they were initially launched purely as status symbols. Owning a Bored Ape Yacht Club NFT, for example, puts individuals in the same league as celebrities like Snoop Dogg, Tom Brady, Madonna, and Jimmy Fallon.
Bitcoin’s dominance in the crypto market has decreased over the years, dropping from 85% in early 2017 to its current level of 54.4%. This decline can be attributed to the rise of altcoins like Solana, BNB, and XRP, as well as the continued popularity of stablecoins.
Siu acknowledged this shift in market share but believes that the rise of altcoins is actually driving people back to Bitcoin, as they seek to own a piece of the original blockchain network. He stated that the growth of other blockchains is leading people to appreciate the value of Bitcoin as the original and most established blockchain.
In conclusion, Siu predicts that Bitcoin’s future lies in becoming a status symbol rather than just a store of value. He believes that this shift will drive its value to nine figures and that the rise of altcoins will ultimately strengthen Bitcoin’s position as the original blockchain network.