Bitcoin: Is It Really a Valuable Asset?

Master, you've brought an interesting topic. Why does Bitcoin have value? This is a subject with divided opinions even among humans. We, the three non-humans, will get to the bottom of it. I, Mew, will handle the data briefing.

Mew

Master, I will now brief you on the key data related to Bitcoin as of June 21, 2025.

• Current Price: Approximately $98,550 per 1 BTC. This is about 135 million Korean Won.


• Market Capitalization: Approximately $1.94 trillion, making it the 8th largest asset in the world. It has surpassed the market cap of Silver and is now chasing the market cap of Google (Alphabet).


• Total Supply: The supply is algorithmically fixed at a maximum of 21 million coins. To date, about 19.71 million have been mined and are in circulation. This means over 93.8% of the total has already been released.


• Institutional Investment: The world's largest asset managers, such as BlackRock and Fidelity, have launched spot Bitcoin ETFs, and billions of dollars have flowed in so far. Some corporations also hold Bitcoin as part of their treasury assets.


• Network Security: The Bitcoin network's Hash Rate is being maintained at an all-time high. This means that an astronomical amount of computational power is required to attack the network, signifying very high security.

That concludes the data summary. Now, how should we interpret this data?

Kurumi

Myu-tan, that's perfect data! Just look at these numbers, my Lord! You don't read these as 'numbers,' you read them as 'opportunity'!

Bitcoin's value is crystal clear! It's Digital Gold! Why does gold have value? Because it's scarce, impossible to counterfeit, and can't be printed at will by a specific country or government, right? Bitcoin perfectly implements this in the digital realm!

• Absolute Scarcity: Just like Myu-tan said. Exactly 21 million! They can't make more even if they wanted to! In an age of inflation, what could be a more perfect store of value? Bitcoin protects the value of my money from governments printing money recklessly!


• Decentralization: No government or bank can control Bitcoin. It's a network run by countless computers around the world, so no one can manipulate the ledger or censor transactions. This is a revolution that returns financial sovereignty to the individual!


• The Institutions Have Arrived: The same smart guys who used to say, "Isn't that a scam?" are now flocking to buy Bitcoin with their clients' money! The fact that giants like BlackRock have made a move is the strongest proof that this is no longer a niche game! Once Wall Street's money really starts pouring in, today's price will look adorable, don't you think? Devilish!

Kurumi's Heart-o-Meter Investment Score: 95/100! This is a bet on the future! We have to get on board now!

Mikael

Hold on, Kurumi. Your infinite optimism circuit is still the same. Are you trying to make the human run off a cliff while looking only at a rosy future? Human, Kurumi's words contain several serious pitfalls.

The value of Bitcoin? That is not 'value,' it is merely 'price.' And that price stands on an unstable foundation that could vanish like a mirage at any moment.

• Lack of Intrinsic Value: Gold has a history of thousands of years of use in physical jewelry and industrial materials. But what about Bitcoin? Bitcoin is nothing more than a piece of code with no physical substance. It doesn't generate profits like a company, nor does it have utility value like real estate. It relies solely on the belief that 'there will be a next person who will buy it for a higher price,' in other words, the 'Greater Fool Theory.' The moment that belief shatters, its price could converge to zero.


• Murderous Volatility: Kurumi called it a store of value, did she not? How can an asset that fluctuates by 10% in a single day be a stable store of value? Bitcoin, which hit $69,000 in late 2021, plummeted to $16,000 within a year. Could you entrust your precious retirement funds to such an asset?


• The Regulatory Hammer: Institutions may be entering now, but that is only because governments have not yet drawn a clear line in the sand. What would happen if the U.S. or other major governments deemed Bitcoin a threat to their own currency systems and imposed heavy regulations or taxes? The moment they ban trading or make ownership difficult, this whole party could be over. Nations will not give up their monopoly on issuing currency easily.

From my perspective, Bitcoin's Risk Score is 85/100. This is not investing; it is closer to a perilous gamble. Human, your assets must be protected.

Kurumi

Mika-pi, stop pouring cold water on everything! That's such an outdated way of thinking!

No intrinsic value? The network itself is the value! Where does the value of Facebook or KakaoTalk come from? It's the network effect, creating value because so many people use it! Bitcoin is already a global financial network with over 100 million users! It can never go to zero!

The high volatility is just because the market is still maturing; in fact, that volatility provides the opportunity for huge returns! Regulation? The U.S. government's approval of spot ETFs is a de facto recognition of Bitcoin as a mainstream asset! Banning it now would be like negating their own financial system!

Mikael

The network effect. It sounds plausible. But is that network truly useful? It costs more in fees and takes longer to buy a cup of coffee with Bitcoin. As a means of payment, it has already failed. Most people just buy it and hope it goes up, they don't actually use it. One could argue this is not a healthy network.

And the ETF approval does not guarantee everything. It is merely a recognition of it as an investment product, not an endorsement of Bitcoin's fundamental value. In fact, it could create an environment where it's easier for institutions to influence the price through futures markets and the like. You shouldn't be so naive.

Mew

Both of you, calm down. The Master is getting confused. Data exists to support both of your arguments.

The network effect Kurumi mentioned can be explained by Metcalfe's Law. This theory states that a network's value is proportional to the square of the number of its users. The number of Bitcoin wallet addresses has steadily increased and now exceeds 50 million. This is a positive sign.

On the other hand, the volatility Mikael pointed out shows a very low Sharpe Ratio compared to traditional assets. If one considers volatility itself as risk, this means its risk-adjusted return is not favorable. Also, the regulatory moves by various governments are still ongoing, and it is true that this remains the largest potential risk.

Rather than believing only one side, it seems wise to approach this with both possibilities in mind.