Are altcoin founders selling alts to invest in Bitcoin?

Author: Anthony Pompliano, a well-known encryption KOL; Translation: Golden Finance xiaozou

After nearly a decade of struggling in the Bitcoin and encryption industry, you would think you've seen everything that could happen, but occasionally new situations arise that leave you speechless. This was exactly how I felt when I watched a recent video of Cardano founder Charles Hoskinson speaking yesterday.

Hoskinson spoke about selling altcoins from the Cardano treasury to buy Bitcoin.

This video is eye-opening for three reasons. First, Hoskinson essentially admits that his altcoin can't compete with Bitcoin in the long run. The only way to create long-term economic value is to sell altcoin assets and buy Bitcoin. This seems to indicate that altcoin founders have realized that Bitcoin will never go away.

Secondly, Hoskinson seems to understand that Bitcoin treasury companies are launching speculative attacks on Bitcoin. These companies are buying Bitcoin by selling stocks, and therefore, altcoin foundations are also capable of selling altcoins in exchange for Bitcoin. This theory of "speculative attacks," promoted by Pierre Rochard in 2014, has become one of the most important ideas driving Bitcoin adoption in recent years.

The third point, perhaps the most intriguing, is that the superior performance of the Bitcoin Treasury Company is too dazzling to ignore. In the case of Metaplanet, Simon Gerovich, Dylan LeClair and their team have created one of the world's brightest performing stocks. In just over a year, the company grew its balance sheet bitcoin holdings from zero to 10,000. The pace of development is breathtaking.

Imagine you currently hold hundreds of millions of dollars worth of altcoins, yet you watch helplessly as they continue to depreciate in front of Bitcoin. Naturally, you would begin to consider: selling altcoins to invest in Bitcoin might be able to achieve asset appreciation. This is no different from selling depreciated dollars or stocks of listed companies. We are witnessing this speculative attack permeate every corner of the financial world.

Everyone is eager to acquire Bitcoin and is willing to sell any asset to obtain more Bitcoin. This has always been the core assertion of Bitcoin believers – hard money will eventually absorb capital like a black hole – and witnessing this theory manifest globally today is truly exciting.

If you believe that Bitcoin is nearing its peak in this cycle, remember: Bitcoin has a long way to go to catch up with the global M2 money supply. Raoul Pal recently pointed out that "89% of Bitcoin's price movements are related to global liquidity."

This means Bitcoin may reach a price of $150,000 in the coming months, but after all, no one has a crystal ball to predict the future, so let's wait and see. Bitcoin is penetrating Wall Street in various new ways, and people are doing their utmost to hoard this digital asset. Initiating speculative attacks—especially when you have a stash of altcoins—can be a wise choice.