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Bitcoin currently resembles the social network Facebook as it was 24 years ago—when the early growth phase concluded and it lost its status as an underground fascination, stated Bloomberg Intelligence analyst Eric Balchunas.
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The loss of Bitcoin’s underground asset status should be viewed as a natural progression rather than a sign of weakness, according to the expert. The first cryptocurrency has moved beyond a limited circle of enthusiasts and is becoming integrated into the financial system. Balchunas believes that the launch of spot Bitcoin ETFs has played a significant role in this process, providing a broader range of investors access to the asset.
“On one hand, Bitcoin no longer seems as cool due to the baby boomer generation. On the other hand, when the hype factor diminished, the number of Facebook users grew from one billion to three billion, so there is still much ahead,” the analyst assured.
According to the Bloomberg specialist, the expansion of the audience inevitably leads to a decrease in the ‘exclusivity effect’; however, this very process alters the demand structure and enhances the resilience of the first cryptocurrency.
The influx of widespread passive capital could trigger the next growth phase—transitioning from a niche asset to a mainstream tool opens a new chapter for Bitcoin rather than concluding its development, Balchunas believes.
Previously, analysts from trading firm QCP Capital noted that the notion of Bitcoin as a ‘safe haven’ has resurfaced— the cryptocurrency market is testing this assertion in real-time.
