A Crypto analyst says that the Bitcoin treasure strategy may not have the longevity that many expect, warning that the easy increase can already be behind new companies in space.
“My instinct is that the Bitcoin treasure strategy has a much shorter lifespan than most expectations,” Glassnode James Check’s main analyst said on Friday in a post.
“It could already be finished” for new Bitcoin cash companies
“For many new entrants, this could already be finished,” said Check, adding that it is not a “measurement competition”, but rather to what extent the product and strategy of a company are sustainable with regard to the long -term accumulation of Bitcoin (BTC).
Check said it became a difficult battle for new Bitcoin cash companies while investors promote the first adopters. “No one wants the 50th cash flow company,” said Check.
“I think we are already close to the” show me “phase, where it will be increasingly difficult for the random society X to support a bonus and take off without a serious niche.”
During the 30 -day period until Friday, at least 21 entities added Bitcoin as a reserve asset, according to Bitcointheries data. The biggest Bitcoin public treasure, Michael Saylor’s strategy (MSTR), has 597,325 BTC, while the second largest Mara Holdings, holds 50,000 BTC – about a twelfth plus.
Check said that Startup Bitcoin’s Bitcoin cash companies attract retail speculators – but warn that they do not have “infinite money”.
The check admitted that it is difficult to put a delay on the slowdown of more recent companies, because it is “optimistic” on the Bitcoin price, which is negotiated at $ 107,990 at the time of publication, around 3.70% on its $ 111,970 of all time, according to CoinmarketCap data.
“It’s a spectrum,” he said, explaining that, for example, the strategy has more track than the 300th Bitcoin Treasury Company to enter the market.
Check said he agreed with the co -founder of the Wizards Taproot Udi Wizardheimer, according to some companies, uses a Bitcoin cash strategy as a way to make rapid benefits, without fully understanding its long -term goal.
“The weak” can be acquired by the biggest Bitcoin players
“Many people who are easy money and have no idea what they are doing,” said Wizardheimer.
“I think it will take time to understand,” he said, adding:
“The weak could be acquired at prices reduced by the forts, and the trend could still be a few additional legs.”
Recently, several doubts have emerged on companies adopting a Bitcoin cash strategy.
The venture capital company Breed argued in a report of June 29 that only a few Bitcoin cash companies will not resist the test of time and will avoid the vicious “death spiral” which will have an impact on the BTC portfolio companies which are negotiated near the net value of the assets (NAV).
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On June 11, Fakhul Miah, Managing Director of Gomining Institutional, told Cointtelegraph what concerned him most “copycates”.
“There are now other companies that try to create Bitcoin banks without appropriate guarantees or risk management. If these small businesses are blocking, we could see a training effect that harms Bitcoin,” said Miah.
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