- Senior macro strategist at Bloomberg Intelligence believes that the Bitcoin network has never been more secure than it is now.
- McGlone predicts that the cryptocurrency will eventually trade more like gold or a Treasury bond in the long run.
Senior macro strategist at Bloomberg Intelligence Mike McGlone believes that the Bitcoin network has never been more secure than it is now. McGlone shared his views on the cryptocurrency industry on LinkedIn, focusing on hot topics like Bitcoin, liquidity, regulatory frameworks, and stablecoins.
He points out that Bitcoin’s hashrate has increased by an impressive 25% since the beginning of the year, indicating that network participants’ confidence is now at an all-time high.
The higher the index, the more difficult it is for anyone to control the network or manipulate transactions. And Bitcoin’s hashrate not only doubled during the 2022 bear market, but it is still increasing. This is despite direct attacks on miners by US regulators, according to the strategist.
While regulators and central banks work to restore public trust in the traditional banking system, the Bitcoin network’s armory of miners, nodes, and users continues to grow organically, McGlone emphasized.
Bitcoin will trade like gold or a treasury bond, McGlone predicts
However, McGlone still sees vulnerabilities in the price movement of Bitcoin, which is regarded as an extremely volatile asset.
While McGlone does not deny that the price of Bitcoin may suffer from dwindling liquidity in the US economy, he predicts that the cryptocurrency will eventually trade more like gold or a Treasury bond in the long run.
In an interview with David Lin earlier, McGlone said that Bitcoin will outperform most risk assets as it comes of age. Historically, it is the banking crisis that has determined the value of Bitcoin at different junctures. The last banking crisis (referring to the 2007-08 financial crisis) saw its birth and the current one is defining it. Its value might fall in the short run but it will outgrow that phase and turn into a bullish asset.
Bitcoin has been trading around the $28,000 mark for the past few days. At press time, it was trading at $27,955.73.