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▲ Bitcoin (BTC)
Despite warnings from economists that Bitcoin (BTC) would lose its value due to energy consumption issues, it has proven unique resilience during every geopolitical crisis, solidifying its asset value.
The cryptocurrency-focused YouTube channel Altcoin Daily, in a video released on April 8 (local time), heavily featured the views of economist Professor Steve Keen, who argued for the potential extinction of Bitcoin's value, and market data analysis refuting it. Professor Keen, who predicted the 2008 financial crisis, warned that Bitcoin's value would eventually drop to $0, citing its immense energy consumption. He analyzed that cryptocurrency mining would be the first target for regulation in a situation where global energy reduction is inevitable to combat the climate crisis.
However, Bitcoin proponents, including environmental expert Daniel Batten, countered that Bitcoin is, in fact, a core technology that helps energy transition. Bitcoin mining utilizes energy that would otherwise be wasted and unused, or it enhances the economic viability of the renewable energy industry. Its flexibility, which allows it to immediately halt operations during periods of surging power demand, contributing to grid stability, is also a unique strength of Bitcoin. The ability to convert, store, and transport surplus energy worldwide in the form of digital assets proves its technological value.
The price trend shown by Bitcoin during the recent escalation of tensions in the Middle East supports this technological trust. When stock, bond, and gold prices were falling due to the conflict between US President Donald Trump and Iran, Bitcoin maintained a relatively stable trend. Its neutral nature, not being dependent on the policies or military power of a specific country, acted as a factor attracting investors during times of turmoil. Trump's mediation efforts and geopolitical uncertainties became an opportunity to perceive Bitcoin not merely as a risky asset but as an alternative to safe-haven assets.
Historical data also suggests the possibility of a strong rebound for Bitcoin after a crisis. After major geopolitical events such as the 2020 conflict between the US and Iran, the spread of COVID-19, and Russia's invasion of Ukraine in 2022, Bitcoin experienced temporary declines but always recorded high returns of 15% to 32% after 60 days. This performance contrasts with the S&P500 index or gold, which either stagnated or declined during the same periods. As volatility indicators have stabilized compared to the past, Bitcoin investors are placing greater value on long-term resilience than short-term noise.
The Bitcoin ecosystem is enhancing the sustainability of the asset through improved energy efficiency and integration into mainstream finance. The eco-friendly transition of the mining industry and the influx of institutional investors' funds are becoming key drivers in dispelling Professor Keen's concerns about value extinction. Bitcoin is strengthening its unique position amidst global financial system changes and technological innovation, establishing itself as a central pillar of the future asset market.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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