Bitcoin’s Irony: Rewriting Money Rules While Struggling for True Adoption đŸ€”đŸ’°

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  • While Bitcoin clings to the $100k mark, its mainstream adoption remains a distant dream
  • Stablecoin regulations might just be the U.S. Treasury’s secret weapon, reinforcing the dollar’s iron grip on crypto

Bitcoin [BTC] has somehow managed to keep its head above the critical $100,000-threshold, a testament to its stubborn resilience despite the market’s rollercoaster rides. As of now, the world’s most famous crypto is trading at $108,887.85, with a modest 0.75% gain over the last 24 hours.

Yet, this stability, while impressive, doesn’t quite answer the burning question: Is Bitcoin truly being adopted by the masses, or is it just another shiny toy for the crypto elite? đŸ€·â€â™‚ïž

Bill Miller on Bitcoin adoption

Bill Miller IV, the CIO of Miller Value Partners, recently shared his thoughts on the Coin Stories podcast. Despite Bitcoin’s sky-high prices, Miller pointed out that it hasn’t exactly become the go-to currency for everyday transactions or institutional investments.

His insights echo a growing sentiment among industry veterans: Bitcoin’s market success hasn’t translated into widespread use.

He said,

“Yeah. Well, TradFi tends to be not always the first movers on this type of thing, just because it’s a game of risk management.”

The podcast also delved into the curious role of U.S. Treasuries in the digital asset world. It’s a bit of a paradox: while every U.S. administration claims to support dollar dominance, their policies might actually be weakening it. đŸ€Šâ€â™‚ïž

One idea that caught attention was the potential for creating artificial demand for treasuries by requiring stablecoin issuers to hold them as part of their reserves. This could embed treasuries deeper into the crypto ecosystem, reinforcing the dollar’s global position under the guise of regulation.

Miller added,

“I think it’s going to depend, you know, from at the end of the day, a net impact perspective on the total size of the treasuries held relative to the overall market. And I think it’s probably still not that large, but again, I don’t know. So, you know, I shouldn’t be talking about that because I don’t know.”

What are macroeconomic trends hinting at?

The drop in active addresses seemed to confirm the skepticism. The latest readings suggested a decline in network activity, often a sign of lower user engagement, market uncertainty, or investors holding onto their coins rather than trading.

However, a dip in activity doesn’t always spell doom. It might just be a cooldown after recent surges.

When it comes to macroeconomic trends, one thing is clear: forecasting them is a daunting and often futile task. Even seasoned analysts admit that macro is notoriously difficult to predict with precision. Miller put it best when he said, “nothing stops this train,” highlighting the relentless momentum of inflationary monetary policies worldwide.

This is because every major global currency is under pressure to keep printing to cover ballooning deficits, with the U.S. alone facing a $1.9 trillion deficit. This systemic need for money creation isn’t going away anytime soon. From a game theory perspective, this only strengthens Bitcoin’s long-term case.

Miller further explained that if you overlay Bitcoin’s performance with the M2 money supply, the correlation becomes increasingly compelling.

In the short term, markets may wobble, and economists may sound alarms too late. However, in the long term, Bitcoin stands to benefit from the macroeconomic chaos.

Amid the surrounding volatility, Bitcoin’s core value as a hedge against fiat currency debasement will continue to strengthen – a sign of a bullish long-term outlook, despite near-term uncertainty. 🚀

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2025-07-07 10:22