Bitcoin May Become Irrelevant In The Next Bear Market, Viral Essay Argues

Core Viewpoint - The latest Bitcoin correction raises questions about whether traders and institutions are moving on from Bitcoin, with Pillage Capital suggesting that Bitcoin has fulfilled its original mission and is now structurally irrelevant [1][5][6] Group 1: Bitcoin's Original Purpose - Bitcoin was designed as a decentralized tool to challenge the U.S. government's resistance to digital assets, not as a final currency for humanity [2] - It successfully forced regulators to accept tokenized assets as legitimate, leading to the development of a multi-trillion-dollar crypto market [3] Group 2: Evolving Financial Infrastructure - The emergence of compliant digital-asset rails has diminished Bitcoin's monopoly as the only censorship-resistant value network [4] - The focus has shifted from decentralization to the underlying asset, issuer, and utility, with blockchains becoming interchangeable [4] Group 3: Declining Value Proposition - As financial infrastructure modernized, Bitcoin's value proposition weakened, underperforming compared to the Nasdaq and facing user experience issues [5] - Users increasingly prefer systems with safety nets, where errors can be reversed and losses can be mitigated, highlighting a shift in user preferences [6] Group 4: Shift Towards Regulated Assets - Capital is moving towards tokenized real-world assets that offer real yield and backing, with Tether holding more gold than Bitcoin [6] - The next era of crypto is expected to focus on regulated tokenized real assets rather than speculative digital currencies [7]