- As some criticisms rise against the approval of ETPs, opponents also find an opportunity to claim that Bitcoin has no recovery beyond this level.
- Contrary to claims that Bitcoin is ‘unsupported by anything,’ Elmandjra countered, asserting that it is actually backed by the world’s most powerful computer network.
- Supporters argue that rejecting Bitcoin’s lack of intrinsic value ignores its potential role as a global digital currency.
Bitcoin’s price is under selling pressure this week, losing strength: ARK Invest comments on concerns about Bitcoin!
ARK Invest Addresses Concerns About Bitcoin
Following the approval of the first spot Bitcoin ETFs earlier this month, Bitcoin is displaying live price movements. On Tuesday, BTC lost over 2% in a day, falling below $39,000. While some criticisms rise against the decision to approve ETPs, opponents also find an opportunity to claim that Bitcoin has no recovery beyond this level.
Despite facing typical industry challenges, ARK Invest defends Bitcoin’s fair value. Yassine Elmandjra from the investment firm effectively refutes concerns about Bitcoin’s control, volatility, and practicality, expressed by prominent figures and institutions like Jamie Dimon, Vanguard, and UBS. Elmandjra argues that Bitcoin is actually backed by the world’s most powerful computer network.
Contrary to claims that Bitcoin is ‘unsupported by anything,’ Elmandjra countered, asserting that it is actually backed by the world’s most powerful computer network. ARK, with a surprising 500 exahash/s, claims that it surpasses the computing capabilities of even the largest global information systems.
Recently, Bitcoin surpassed 650 EH/s, approaching a record high. At the time of writing, the value stands at 551 EH/s. The decentralization feature, a fundamental characteristic of the crypto community, enables the distributed network to create a situation in its favor.
“This computing power is not centralized, not controlled by a single entity. It’s distributed across a global network, which makes it decentralized and resistant to attacks or failures,” Elmandjra added.
Supporters argue that rejecting Bitcoin’s lack of intrinsic value ignores its potential role as a global digital currency. Especially when considering the market value of around $800 billion, this argument is hard to dismiss.
Responding to Common Misconceptions
Elmandjra also addressed Bitcoin’s often criticized energy consumption, describing it as a strategic allocation to sustain a vital network for the money of the future. He argued that Bitcoin’s perceived slow transaction speed embraces security and decentralization priorities.
Elmandjra from ARK also expressed that Bitcoin’s volatility is not a flaw but, on the contrary, evidence of the credibility of its monetary policy. Furthermore, he added that concerns about Bitcoin being used in criminal activities ignore the fundamental feature of censorship resistance.
“Governments cannot stop Bitcoin. They can only prevent themselves from using it,” he added. Despite the widespread misinformation surrounding Bitcoin, it also possesses some internal risks that make it highly speculative. Its variable, secure, and innovative nature challenges traditional financial concepts, but investors should be cautious when making risky investments.
