According to CoinDesk, recent optimism in the Bitcoin ecosystem has been driven by the approval of Bitcoin spot market exchange-traded funds (ETFs). However, the true potential of Bitcoin lies in its use as a currency rather than an asset held in ETFs or hardware wallets. Zac Townsend, CEO and co-founder of bitcoin-denominated insurance company Meanwhile, believes that the future of Bitcoin involves robust economic activity denominated in the cryptocurrency.
Bitcoin's strengths lie in storing value, settling large payments, and conducting financial services. With at least 57 countries experiencing inflation rates over 10% last year, the day-to-day volatility of Bitcoin's exchange rate may seem less risky than the fiscal and monetary mismanagement of countries worldwide. For this future to exist, companies and institutions must be built within the Bitcoin economy. Meanwhile, one of the first fully-fledged, regulated life insurance companies denominated in Bitcoin, operates on a modified accounting basis with Bitcoin as the unit of currency, regulated by the Bermuda Monetary Authority.
Operating on the Bitcoin Standard, Meanwhile's balance sheet and income statement are entirely in Bitcoin, with policyholders paying premiums and receiving claims in the cryptocurrency. This approach allows the company to operate without being affected by exchange rate fluctuations. As more businesses and individuals recognize the value of building on the Bitcoin Standard, the focus will shift from Bitcoin's exchange rate to its use as a store-of-value that will appreciate over time.