Altcoin founder is selling altcoins to switch to Bitcoin?

Author: Anthony Pompliano, well-known encryption KOL; Translation: Golden Finance xiaozou

After nearly a decade of struggling in the Bitcoin and crypto industry, you thought you had seen everything that could happen, but occasionally new situations that shocked you. This is exactly how I felt when I saw a recent conversation video by Cardano founder Charles Hoskinson yesterday.

Hoskinson made a statement on selling altcoins in Cardano's treasury to buy Bitcoin.

This video is eye-opening for three reasons. First, Hoskinson essentially admits that his altcoins cannot compete with Bitcoin in the long run. The only way to create long-term economic value is to sell altcoin assets and buy bitcoin. This seems to herald the altcoin founders have realized that Bitcoin will never disappear.

Secondly, Hoskinson seems to understand that Bitcoin Treasury companies are launching speculative attacks on Bitcoin. These companies buy Bitcoin by selling stocks, so the Altcoin Foundation is equally capable of selling altcoins for Bitcoin. This "speculative attack" theory promoted by Pierre Rochard in 2014 has become one of the most important ideas that have promoted Bitcoin adoption in recent years.

The third point is perhaps the most intriguing - the superior performance of Bitcoin Treasury companies is so dazzling that it cannot be ignored. Taking Metaplanet as an example, Simon Gerovich, Dylan LeClair and his team have created one of the most performing stocks in the world. The company only took a little over a year to increase its Bitcoin holdings on its balance sheet from zero to 10,000. This development speed is breathtaking.

Imagine you now hold hundreds of millions of dollars worth of altcoins and watch them continue to depreciate in front of Bitcoin. You will naturally start to consider: selling altcoins to Bitcoin may achieve asset appreciation. This is no different from selling depreciated USD or listed company stocks. We are witnessing this speculative attack penetrates every corner of the financial world.

Everyone is eager to get Bitcoin and is willing to sell any asset in exchange for more Bitcoin. This has always been the core proposition of Bitcoin believers - hard currency will eventually absorb capital like a black hole - it is really exciting to witness this theory fulfillment globally.

If you think Bitcoin’s cycle is approaching its peak, please remember: Bitcoin still has a long way to go to catch up with the global M2 currency supply. Raoul Pal recently pointed out that "89% of Bitcoin's price movements are related to global liquidity."

This means that Bitcoin may reach a $150,000 price in the next few months, but after all, no one has predicted the future crystal ball, let's wait and see. Bitcoin is penetrating Wall Street in all kinds of new ways, and people do their best to hoard this digital asset. And launching speculative attacks—especially when you own altcoins—is a wise choice.