Analyst Warns Capital Flows Must Grow to Rival Gold and the U.S. Dollar
Bitcoin could be the ideal store of value for centuries, according to veteran crypto analyst Willy Woo, but its global dominance hinges on attracting significantly larger investment flows. Speaking at the Baltic Honeybadger conference in Riga, Latvia, Woo described Bitcoin as “the perfect asset for the next thousand years”, yet warned it will not overtake gold or the U.S. dollar unless its market capitalization expands dramatically.
Currently, Bitcoin’s market cap sits at $2.42 trillion, less than 11% of gold’s $23 trillion and far below the U.S. dollar’s $21.9 trillion money supply.
“You don’t get to change the world unless this monetary asset… gets big enough to rival the U.S. dollar,” Woo said.
Woo highlighted that Bitcoin treasury companies are accelerating institutional adoption, but their debt structures remain opaque. This lack of transparency could lead to vulnerabilities during a downturn.
“The weak ones will blow up, and people can lose a lot of money,” he cautioned, adding that similar trends in altcoin treasuries could “create another bubble.”
He questioned what would happen in a severe bear market, asking: “Who’s swimming naked and how many coins get slapped back out into the market?”
Woo also expressed concern over reliance on spot Bitcoin ETFs and custodial services like Coinbase Custody. While these channels enable large-scale investment, they concentrate holdings in a way that could make nation-state intervention more feasible.
“Investors with the money bags aren’t self-custodying… they’re taking on the risk of being rugged at a nation-state level,” Woo said.
Self-Custody Adoption Expected to Spread
Max Kei, CEO of Bitcoin self-custody platform Debifi, predicted that custody practices will shift gradually from institutional providers to everyday businesses and eventually to individuals.
As Bitcoin’s market matures, the balance between mainstream adoption and decentralized self-custody will likely define its role in the global financial system over the next century.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.