After the U.S. approved its first spot Bitcoin ETF, Bitcoin’s price began to fall, dropping below $40,000 on January 22. Critics argue that a recovery beyond this level is unlikely for Bitcoin, despite opposition to the SEC’s decision to approve spot ETFs. ARK Invest defends Bitcoin’s fair value, despite industry challenges, with Yassine Elmandjra countering doubts expressed by significant figures and institutions like Jamie Dimon, Vanguard, and UBS regarding Bitcoin’s control, volatility, and practicality.
Elmandjra contends that Bitcoin is backed by the world’s most powerful computing network, contrary to claims that it’s unsupported. He highlights the network’s astonishing speed, surpassing the largest global computing systems, with Bitcoin’s computational power recently reaching a record high of 650 EH/s, currently at 551 EH/s.
Decentralization is a core feature of the crypto world, and the distributed network provides resilience against attacks or issues. Elmandjra emphasizes that this computing power is not centralized or controlled by a single entity, but is distributed across a global network.
Bitcoin advocates refute the claim that the largest cryptocurrency lacks fair value, arguing that its potential role as a global digital currency is overlooked, especially considering its massive market value of around $800 billion.
Elmandjra also addresses Bitcoin’s often-criticized energy consumption, suggesting it’s a strategic allocation vital for maintaining the network’s future. He explains that Bitcoin’s perceived slow transaction speed is a deliberate choice prioritizing security and decentralization. Furthermore, he reiterates that Bitcoin’s volatile price movements are not flaws but evidence of the reliability of its monetary policy. Finally, Elmandjra dismisses concerns about Bitcoin being controlled by Satoshi Nakamoto and its use in illicit activities, underscoring Bitcoin’s resistance to censorship.