Jean-Marie Mognetti, the CEO of CoinShares, recently shared his insights into the current state of the cryptocurrency industry, with a particular focus on Bitcoin.
In a conversation with Thinking Crypto, Mognetti highlighted the heavy venture capital funding that many crypto asset management companies have received, leading to significant cash expenditure without a strong emphasis on profitability. He noted that if a company can’t turn a profit when Bitcoin is priced at $60,000, it raises questions about when they will ever achieve profitability.
Mognetti emphasized that investors are becoming weary of supporting businesses that fail to generate profits. He also discussed the evolution of the Bitcoin mining industry, especially after China’s mining ban, which prompted miners to relocate to different regions worldwide. Mognetti compared the initial, rudimentary mining operations to today’s sophisticated facilities run by companies like Marathon, indicating significant industry advancement. This growth is further accelerated by the entry of traditional finance (TradFi) through products like ETFs.
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Additionally, Mognetti commented on the political dynamics affecting crypto, expressing concerns about the increasing involvement of U.S. politicians. He cautioned against crypto becoming affiliated with any single political party and stressed the importance of keeping it a bipartisan issue. He anticipated that U.S. crypto regulations would likely emerge by 2025, potentially arriving sooner if a Republican administration comes into power.
Regarding Bitcoin’s adoption, Mognetti noted how businesses are beginning to include Bitcoin on their balance sheets as a treasury reserve asset. He views Bitcoin as a “hyper-macro asset” ideal for a balance sheet due to its rising recognition through ETFs and discussions around its potential as a Federal Reserve reserve asset.
Mognetti also pointed out that while real estate prices might appear to increase, this is often due to the dollar’s declining value, positioning Bitcoin as an attractive store of value.
Cre: coinpedia
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