Anatoly Yakovenko, the creator of Solana (SOL), posits that Bitcoin’s (BTC) primary function is as a safeguard against the potential collapse of a superpower.
In a recent thread on the social media platform X, Yakovenko suggests that Bitcoin should be viewed as an expense rather than an investment—serving to protect against the risk of a nation with significant economic and military power collapsing.
“BTC lacks inherent value. At best, it functions as insurance. From my perspective, there’s a 1% chance a superpower may fall in any given year.
Investing 1% of my wealth in an asset that could potentially retain value in such a scenario seems worthwhile to me. It’s not an investment; it’s a cost, and there’s no assurance it will succeed. Whether priced at $100,000 or $10,000, it serves the same purpose.
If it succeeds, it’s largely unrelated to technology beyond the original breakthroughs from 15 years ago.”
Many notable figures in the cryptocurrency space support the idea of BTC as a hedge against currency devaluation. Yakovenko acknowledges this stance, as it aligns with his viewpoint, but he believes that investors should not commit all their resources to BTC.
“Currency debasement is akin to superpower collapse; they share a common purpose—insurance. If it succeeds, it’s because safety and property rights possess inherent value. They are fundamental human needs according to Maslow’s hierarchy. However, the correlation isn’t direct.
The absolute worst scenario is holding 100% BTC.”
While Yakovenko asserts that Bitcoin lacks intrinsic value, he advocates for layer-1 blockchains such as Solana, which are explicitly designed to generate revenue through every transaction.
When questioned about the significance of coins requiring gas for transaction processing, Yakovenko replied,
“It represents the share of all future capturable fees.”
As of this writing, Bitcoin is priced at $86,236, reflecting a rise of over 2% within the last 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should conduct their due diligence before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor. Note that The Daily Hodl engages in affiliate marketing.
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