Lark Davis argues that Bitcoin scarcity is becoming a critical reality, fueled by growing institutional, governmental, and corporate interest. He highlights recent developments like Texas proposing a strategic Bitcoin reserve, with other U.S. states possibly following suit.
Davis notes that countries such as Japan and Brazil are also discussing similar reserves, showcasing Bitcoin's expanding global adoption. He underscores that Wall Street alone purchased $1.7 billion worth of Bitcoin this week, signaling massive institutional demand.
Davis predicts that while the short-term impact of these trends may be overestimated, their long-term effects are likely underestimated. He envisions Bitcoin reaching $1 million by 2030 if adoption continues at this pace. Furthermore, he mentions President-elect Trump’s pro-crypto stance, emphasizing that fostering cryptocurrency innovation in the U.S. could mirror the internet’s economic success.
Ethereum also features prominently in his analysis, with $850 million in weekly Wall Street inflows and ETF holdings now surpassing $2 billion. Davis hints that Ethereum might even be included in potential national crypto reserves, alongside Bitcoin.
He concludes with observations on blockchain ecosystems, noting increased developer activity in networks like Solana, Ethereum, and Aptos. While projects like Cardano and Avalanche lag in developer growth, Davis suggests the focus should remain on ecosystems driving real innovation.
Davis remains optimistic about Bitcoin's trajectory, emphasizing its finite supply amidst soaring demand from states, nations, and corporations. He recommends holding Bitcoin long-term to capitalize on its potential as a cornerstone of the future financial system.
