Marathon Digital’s CEO Compares BTC to Dollar and Banksy’s Artwork

Bitcoin’s role as a transformative financial asset continues to evolve, drawing attention from corporations, governments, and individuals alike. Recently, Marathon Digital’s CEO, Fred Thiel, compared Bitcoin to the U.S. dollar and iconic artwork, emphasizing its value as “hard money” due to its fixed supply and growing demand. Meanwhile, the crypto community was intrigued by the activation of a Bitcoin wallet holding $10.6 million worth of BTC after 11 years of dormancy.

Ancient Bitcoin Wallet Sees Epic Awakening After 11 Years of Dormancy, Sparks Speculation

A Bitcoin wallet containing 185 BTC, worth nearly $10.6 million, was suddenly activated after lying dormant for 11 years, according to blockchain tracking service Whale Alert. This activation has generated significant intrigue within the crypto community as it remains unclear why the wallet, untouched for over a decade, was brought back to life.

Whale Alert first reported the wallet’s reactivation, stating, “A dormant address containing 185 BTC ($10,553,799) has just been activated after 11.0 years.” The wallet, last active when Bitcoin was in its infancy, has raised questions about the possible reasons behind its prolonged dormancy and the timing of its revival. The community has since speculated whether this is a case of rediscovered forgotten funds, a strategic long-term holding, or even a prelude to selling large sums of Bitcoin at current market prices.

When the wallet was last used, Bitcoin was still in its early stages of adoption, trading for less than $100 per coin. Over the past 11 years, Bitcoin’s price has increased exponentially, reaching over $69,000 in 2021 and stabilizing above $56,000 at the time of the wallet’s reactivation. What was likely once a relatively small investment has now grown into a multimillion-dollar fortune.

The identity of the wallet owner remains unknown, which is common in the world of cryptocurrency due to its decentralized nature. This anonymity only fuels further speculation about the reasons for the wallet’s dormancy and the intention behind its sudden activation.

The reawakening of dormant Bitcoin wallets has historically attracted attention due to their potential impact on the market. The mere activation of a large wallet can cause significant price swings as traders and investors speculate on whether the holder intends to sell, hold, or transfer the assets. Given that the wallet now holds over $10 million worth of Bitcoin, any movement could lead to increased volatility in the market.

Some in the crypto community believe the wallet owner might have forgotten about the Bitcoin investment entirely, only rediscovering it as the price of the cryptocurrency reached unprecedented highs. Others suggest the wallet could belong to an early Bitcoin adopter who deliberately held onto their coins as a long-term investment, waiting for the right moment to capitalize on their gains.

The reactivation also raises the possibility that the wallet’s owner could be preparing to cash out their holdings. If the 185 BTC were to be sold in large quantities, it could potentially impact Bitcoin’s price due to the sudden influx of supply. However, with Bitcoin’s trading volume and market capitalization having grown substantially in recent years, it is unlikely that the sale of this amount would significantly disrupt the market.

The Significance of Dormant Wallet Activations

Wallets that have remained inactive for long periods are often referred to as “sleeping giants” in the cryptocurrency space. These dormant wallets are a testament to the early days of Bitcoin when it was a relatively obscure and experimental digital asset. When such wallets resurface, it serves as a reminder of Bitcoin’s dramatic rise from an underground concept to a globally recognized store of value.

The reactivation of long-dormant wallets also offers a glimpse into Bitcoin’s early adopters, many of whom accumulated vast amounts of the cryptocurrency when it was still inexpensive. Some of these holders chose to wait as Bitcoin gained traction and legitimacy, while others may have lost access to their wallets or simply forgotten about their holdings.

This particular activation is reminiscent of other notable wallet reactivations that have made headlines in the past. Each time a dormant wallet awakens, it brings with it a sense of mystery and curiosity about its owner’s intentions and the possible impact on the market.

While this activation alone may not be enough to significantly sway the price of Bitcoin, it highlights a broader trend of long-term holders — sometimes referred to as “HODLers” — choosing to re-enter the market. In the face of ongoing macroeconomic uncertainty, more individuals and institutions are turning to Bitcoin as a hedge against inflation and a store of value, potentially contributing to the continued growth of the cryptocurrency.

At the same time, the activation of dormant wallets serves as a reminder of the unpredictable nature of the crypto market. Bitcoin’s price remains highly volatile, and large transactions or wallet movements can lead to sudden price fluctuations. For investors and traders, keeping an eye on Whale Alert notifications and other blockchain tracking services has become an essential part of navigating the market.

Bitcoin as a “Perfect Asset” for Governments, Corporations, and Banks, Says Marathon CEO Fred Thiel

In related news, Bitcoin (BTC), often dubbed the “digital gold,” has continued to garner attention from financial institutions, governments, and corporations worldwide. According to Fred Thiel, the CEO of Marathon Digital Holdings and Thiel Advisors, Bitcoin is not only a revolutionary digital asset but also a perfect one for future financial strategies. Thiel recently shared his perspective in a video posted by TFTC media, explaining how Bitcoin has evolved into an asset class that rivals traditional forms of value like the U.S. dollar and artwork by Banksy.

In his remarks, Thiel drew an interesting comparison between Bitcoin, the U.S. dollar, and Banksy’s artwork. He noted that all three assets share a common trait: their value stems from the belief that they are valuable. According to Thiel, people give value to these assets based on collective belief, not because they are intrinsically valuable.

Thiel asserts that Bitcoin, which is already considered “hard money” in the eyes of many, will further cement its place as an essential asset for the global economy.

One of the core reasons behind Bitcoin’s appeal, according to Thiel, is its scarcity. With only 21 million Bitcoins ever to be created, Bitcoin stands as a true “hard money” asset, a status shared with commodities like gold. This limited supply makes Bitcoin an attractive asset, especially in a world where fiat currencies can be endlessly printed, causing inflation and eroding the value of money over time.

Thiel stressed that this characteristic will ensure Bitcoin’s continued rise in value over the long term, especially as more countries, corporations, and financial institutions come to recognize its potential. “In the coming years, countries, corporations, and financial institutions will all be holding orange coins,” Thiel predicted, referencing the distinctive orange symbol of Bitcoin.

Marathon Digital Holdings, the company Thiel helms, is one of the largest corporate Bitcoin holders globally. In July 2024, the company took its commitment to the digital asset a step further by investing another $100 million into Bitcoin. This move pushed Marathon’s total Bitcoin holdings to 20,000 coins, which represents almost 0.1% of all the Bitcoin that will ever be created. 

Marathon’s decision to amass such a significant Bitcoin reserve underlines the growing belief that Bitcoin will play a pivotal role in the future of finance. For a company that specializes in Bitcoin mining, this strategy reflects not just a belief in the digital asset’s future price appreciation but also a potential hedge against macroeconomic risks.

Thiel’s stance on Bitcoin is clear: as demand for the cryptocurrency grows and its supply remains fixed, it will inevitably lead to an increase in its price. “When people want to acquire something, it has to go up in price,” Thiel explained, predicting that Bitcoin’s value will continue its upward trajectory.

One of the more significant discussions that has gained traction in recent years is whether Bitcoin could eventually serve as a reserve asset for the United States. With the launch of Bitcoin spot ETFs, the possibility of large-scale institutional and governmental adoption of the cryptocurrency has become a more plausible scenario. Some advocates believe that Bitcoin’s decentralized and limited nature makes it an ideal reserve asset, akin to how gold was once used by nations to back their currencies.

However, not everyone shares this optimistic outlook. Critics argue that if governments, like the U.S., begin accumulating large Bitcoin reserves, it could undermine the decentralized ethos of the cryptocurrency. Jim Bianco, a prominent financial analyst, has expressed concerns that government holdings of Bitcoin could enable state manipulation of its price. According to Bianco, Bitcoin’s decentralization is its most significant advantage, and any large-scale government ownership could destroy this key feature.

This concern is not without merit. In the past, governments have intervened in financial markets to control or influence the value of assets, whether through interest rate manipulation or strategic asset purchases. The question remains whether Bitcoin could maintain its decentralized nature if a substantial portion were held by national governments.

A New Asset Class for the Future?

Thiel’s comments bring attention to the growing narrative that Bitcoin is not just a speculative asset but a fundamental building block for the future of finance. As more corporations like Marathon Digital Holdings continue to invest in Bitcoin and as the debate over its role as a potential reserve asset for governments intensifies, it is becoming increasingly clear that Bitcoin is evolving from its origins as a fringe technology into a mainstream financial instrument.

The idea that Bitcoin can be treated as “hard money” is gaining traction, and with its fixed supply, it offers a level of scarcity that fiat currencies cannot. For financial institutions, governments, and corporations, Bitcoin may provide a hedge against inflation, a store of value, and an alternative to traditional reserves like gold.