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▲ Bitcoin (BTC)
Despite warnings from economists that Bitcoin (BTC) will lose its value due to energy consumption issues, it has demonstrated unique resilience during every geopolitical crisis, solidifying its asset value.
In a video released on April 8 (local time), the cryptocurrency-specialized YouTube channel Altcoin Daily heavily featured the views of economist Professor Steve Keen, who argued for the possibility of Bitcoin's value disappearing, and market data analysis refuting it. Professor Keen, who predicted the 2008 financial crisis, warned that Bitcoin's value would eventually reach $0, citing its enormous energy consumption. He analyzed that cryptocurrency mining would be the first to be regulated in a situation where global energy reduction is inevitable to combat the climate crisis.
However, Bitcoin advocates, including environmental expert Daniel Batten, countered that Bitcoin is, in fact, a key technology that aids energy transition. Bitcoin mining utilizes energy that would otherwise be wasted and enhances the economic viability of the renewable energy industry. Its flexibility to immediately cease operations during periods of high power demand, contributing to grid stability, is also a unique strength of Bitcoin. The ability to convert, store, and transport surplus energy worldwide in the form of digital assets proves its technological value.
The price movement Bitcoin has shown amidst escalating tensions in the Middle East recently supports this technological trust. While stocks, bonds, and gold prices saw a decline due to the conflict between US President Donald Trump and Iran, Bitcoin maintained a relatively stable trend. Its neutral nature, not dependent on the policies or military power of any particular country, acted as a factor attracting investors during times of turmoil. Trump's mediation efforts and geopolitical uncertainties served as an opportunity to perceive Bitcoin not merely as a risky asset but as an alternative to safe-haven assets.
Historical data also suggests the strong potential for Bitcoin's rebound after a crisis. After major geopolitical events such as the conflict between the US and Iran in 2020, the spread of COVID-19, and Russia's invasion of Ukraine in 2022, Bitcoin experienced temporary declines but consistently recorded high returns of 15% to 32% after 60 days. This performance contrasts with the S&P500 index or gold, which either moved sideways or declined during the same periods. As volatility indicators have stabilized compared to the past, Bitcoin investors are placing greater value on long-term resilience rather than short-term noise.
The Bitcoin ecosystem is enhancing the asset's sustainability through improved energy efficiency and integration into mainstream finance. The eco-friendly transition of the mining industry and the influx of institutional investor funds are becoming key drivers in dispelling Professor Keen's concerns about value disappearance. Bitcoin is strengthening its unique position amidst global financial system changes and technological innovation, establishing itself as a central pillar of the future asset market.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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