Jean-Marie Mognetti: Bitcoin Is a 'Hyper-Macro Asset' With Perfect Characteristics for a Balance Sheet

Jean-Marie Mognetti, CEO of CoinShares, shared some thoughts on the state of the crypto industry, especially concerning Bitcoin.

Jean-Marie Mognetti, the CEO of CoinShares, recently shared his insights on the state of the crypto industry, particularly regarding Bitcoin. In an interview with Thinking Crypto, Mognetti highlighted several key points.

One of the main observations made by Mognetti is the heavy reliance of crypto asset management companies on venture capital funding. He noted that a lot of cash is being burned by these companies, without a strong focus on profitability. According to Mognetti, if a company is not profitable at a Bitcoin price of $60,000, it raises questions about when they will ever be profitable.

Mognetti also discussed the growth of the Bitcoin mining industry, particularly following China's ban on mining activities. He highlighted the significant changes that have occurred, with miners relocating to different parts of the world. Mognetti compared the early, unsafe mining setups to the highly advanced facilities operated by companies like Marathon today.

In his view, the industry has matured substantially, especially with the entry of traditional finance (TradFi) through ETFs and other products. Mognetti also touched upon the political landscape, observing the increasing involvement of U.S. politicians in crypto. He expressed concern that crypto should not become aligned with any specific political party, and instead remain a bipartisan issue.

Mognetti anticipates that U.S. crypto regulation will likely be introduced by 2025, or potentially sooner if a Republican administration is in power.

Regarding Bitcoin's growing adoption, Mognetti explained how companies are beginning to include Bitcoin on their balance sheets as a treasury reserve asset. With the rise of ETFs and discussions about Bitcoin as a reserve asset for the Federal Reserve, Mognetti views Bitcoin as a "hyper-macro asset" with ideal characteristics for a balance sheet.

He noted that while the prices of assets like real estate may appear to be rising, it is often the value of the dollar that is decreasing, making Bitcoin an attractive store of value.

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