At the Baltic Honeybadger conference in Riga, veteran Bitcoin analyst Willy Woo painted a picture of a digital asset with unprecedented long-term potential – but also serious hurdles to overcome.
He described Bitcoin as “the perfect asset for the next thousand years,” yet argued it will never challenge gold or the U.S. dollar without far greater inflows of capital.
Today, Bitcoin’s market capitalization is just over $2.4 trillion, dwarfed by gold’s $23 trillion valuation and the U.S. dollar’s $21.9 trillion money supply. For Woo, the gap underscores the scale of adoption still required. But he warned that the channels bringing in institutional money may be building hidden vulnerabilities.
Corporate treasuries and ETFs have accelerated adoption, but many of the largest buyers are avoiding self-custody, opting instead for custodians like Coinbase or treasury vehicles such as MicroStrategy. That, Woo said, could leave large chunks of Bitcoin within the grasp of nation-states – a “rug pull” risk at the government level.
Equally concerning, he noted, is the opaque way some treasury firms handle debt. Without public scrutiny, weaker players could collapse in a downturn, forcing large volumes of BTC back onto the market. Woo sees echoes of the same speculative behavior forming in altcoin treasuries.
Other panelists offered alternative perspectives. Max Kei of Debifi predicted a gradual spread of self-custody practices, starting with institutional custodians, then businesses, and eventually individual holders. Blockstream CEO Adam Back took a more pragmatic approach, suggesting companies measure their own returns against Bitcoin’s projected growth and consider holding BTC if they can’t outperform it.
While opinions differed, the discussion returned to a central point – Bitcoin’s future dominance depends not just on price action, but on who holds it, how securely it’s stored, and whether the next wave of adoption avoids the pitfalls of traditional finance.
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Source: https://coindoo.com/bitcoins-perfect-asset-status-at-risk-without-bigger-adoption-warns-expert/