Jiang Zhuoer, founder of BTC.TOP and LaiBit Mining Pool, one of the largest
Bitcoin mining operations in China, asserts that Bitcoin's most significant long-term risk is not related to price volatility or threats from quantum computing, but rather its lack of practical use.
He explains that without a use case, Bitcoin does not have the same foundational demand as gold, which is used industrially, or Ethereum, which supports smart contracts and decentralized applications.
Instead, Bitcoin’s value is primarily driven by a community belief that it is valuable, creating a loop where people buy it because they perceive it as valuable, and it's considered valuable because people are buying it.
Zhuoer also points out that the gains from Bitcoin have diminished with each market cycle.
If Bitcoin fails to consistently outperform major indices like the Nasdaq, he anticipates that holders will start to sell, leading to potential negative consequences for the market.
Currently, Zhuoer is exclusively holding Ethereum, as he considers it the superior global computing platform.
He believes that as real-world applications of blockchain technology increase, the mechanisms of Ethereum will generate significant value through fee-burning.
Regarding the concept of Q-Day, a date predicted to occur when quantum computers could potentially compromise current encryption methods, Zhuoer sees this event as a pivotal moment for the market.
He believes that while quantum attacks pose a limited technical threat to Bitcoin, Q-Day will likely shift the conversation towards which blockchain will provide genuine utility in a post-quantum world.
Zhuoer previously divested his entire Bitcoin holdings at $82,050 and subsequently repurchased 75% of his position at $82,789, achieving a cumulative profit of 98.6% in U.S. dollar terms, which has drawn attention from the market.
The discussion surrounding the need for Bitcoin to establish real-world use versus being viewed merely as a store of value is, once again, a significant topic within the cryptocurrency community.
