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How BTC Surpasses Traditional Finance, According To Expert

Samson Mow, former Chief Strategy Officer at Blockstream and the CEO of Jan3, recently shared an insight into Bitcoin’s impact on modern financial technology.

1000x Superiority Over Traditional Finance

In a bold statement on X, Mow proclaimed that Bitcoin represents a “quantum” leap in monetary technology, surpassing traditional financial systems by “1,000.” The CEO of Jan3 emphasized that BTC is not merely an “incremental improvement” over existing monetary systems like gold or the US dollar.

Instead, Mow asserted that Bitcoin’s emergence marks a pivotal shift, “revolutionizing” how society perceives and interacts with money. Mow described BTC as a “step change” in the global financial system.

As indicated in the shared screenshot from a dictionary, this signifies a “sudden and discontinuous” transformation. According to Mow, diminishing returns become “irrelevant” in such a transformative scenario because BTC has altered the fundamental nature of monetary exchange and storage.

Regarding the monetary system, a notable industry figure, BitMEX co-founder Arthur Hayes, has pointed out that BTC is decoupling from traditional market indices like the S&P Index.

Hayes highlighted this shift on X, noting that BTC’s price movements began diverging from the S&P Index after introducing spot BTC exchange-traded funds (ETFs) in the US. According to Hayes, this divergence signals differing market expectations and a potential forewarning of challenges for the US dollar.

Bitcoin Continous Bearish Price Action

Meanwhile, Bitcoin has experienced a significant price drop, declining by nearly 10% over the past two weeks and retracting all gains in anticipation of spot ETF approvals. When writing, Bitcoin is trading below the $41,000 mark, with a current value of $40,526, marking a 2.8% decrease in the past day.

BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

This downturn, partly attributed to Grayscale’s BTC sell-offs, hasn’t dampened investor interest in Bitcoin and its associated ETFs. Recent data indicates continued substantial inflows into spot BTC ETFs.

Despite the optimism surrounding these inflows, Kiarash Hossainpour, founder of Colorways Ventures and The Consensus, has recently issued a cautionary note regarding the potential market volatility in the BTC space. Hossainpour alluded to several significant BTC holdings that could exert considerable selling pressure in the market’s first half of 2024.

However, the Consensus founder also acknowledged that the potential impact of these sell-offs might be mitigated by each holder’s varied timelines and strategies, suggesting that the market might absorb these movements without drastic consequences.

Featured image from Unsplash, Chart from TradingView


Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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