Willy Woo: Bitcoin Needs Massive Capital to Rival Gold and the US Dollar

Veteran crypto investor Willy Woo believes Bitcoin is the “perfect asset” for the next millennium but warns it won’t overtake the US dollar or gold without significantly greater capital inflows. Speaking at the Baltic Honeybadger conference in Riga, Latvia, on Sunday, Woo stressed that Bitcoin’s potential to reshape the global financial system hinges on its ability to rival traditional stores of value. Currently, BTC’s market capitalization stands at $2.42 trillion — just over 10% of gold’s $23 trillion market cap and well behind the US 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 US dollar,” Woo said. Risks of a Bitcoin Treasury Bubble Woo identified two major obstacles that could hinder Bitcoin’s path to becoming a world reserve asset. First, while BTC treasury adoption is accelerating, little is publicly known about how these firms structure their debt. He warned this lack of transparency could lead to a “Bitcoin treasury bubble,” where weaker players collapse, wiping out investor funds. He noted that some altcoin treasuries are following the same model, potentially creating similar risks. The second challenge arises during bear markets, when financially vulnerable companies might be forced to liquidate their holdings. “What happens in the bear market? Who’s swimming naked and how many coins get slapped back out into the market?” Woo asked. Nation-State Risks and Self-Custody Concerns Woo also raised concerns about the largest cryptocurrency’s increasing reliance on spot Bitcoin ETFs , pension funds, and institutional custodians such as Coinbase. While these vehicles attract substantial inflows, they also concentrate BTC in custodial arrangements that could be vulnerable to government interference. On the same panel, Max Kei, CEO of Bitcoin self-custody platform Debifi, predicted that self-custody would expand gradually — starting with corporate custodians, then extending to everyday businesses, and eventually to individuals. “It’s just going to spread out massively,” he said. Meanwhile, Blockstream CEO Adam Back argued that companies remain the most logical entry point for large-scale Bitcoin adoption. He suggested using BTC’s projected returns as a “hurdle rate” for evaluating business investments. “If a company can’t beat Bitcoin, they should close up shop and buy Bitcoin,” he said, adding that firms with strong fundamentals could integrate BTC without becoming pure-play crypto businesses. The post Willy Woo: Bitcoin Needs Massive Capital to Rival Gold and the US Dollar appeared first on TheCoinrise.com .

Source: The Coin Rise