Have you ever wondered what the world’s most vocal Bitcoin advocate really thinks about the cryptocurrency he’s poured billions into? It’s easy to assume everyone in the space sees it the same way—as revolutionary digital cash. But when you dig deeper into one prominent figure’s perspective, things get a lot more nuanced. And honestly, it challenges some of the foundational ideas many of us hold dear.
The Core Debate: Money or Commodity?
At its heart, Bitcoin was born from a vision of a decentralized, peer-to-peer electronic cash system. That’s straight from its origins—a tool to bypass traditional financial gatekeepers. Yet, one of the biggest players accumulating it today frames it quite differently. He views Bitcoin primarily as a hard asset, something more akin to a commodity than circulating money.
I’ve followed this space for years, and this distinction hits hard. It’s not just semantics; it shapes how companies build strategies around it, how investors approach it, and ultimately, how Bitcoin evolves in the real world. Perhaps the most interesting aspect is how this commodity lens doesn’t necessarily contradict Bitcoin’s monetary potential—it might even accelerate it in unexpected ways.
A Familiar Metaphor: Bitcoin as Crude Oil
One analogy that’s gained traction compares Bitcoin to crude oil. Think about it: raw oil isn’t something you use directly in your car. It needs refining into gasoline, kerosene, or plastics. Similarly, “raw” Bitcoin, in this view, is a foundational asset that can be transformed into various financial products for broader accessibility.
This isn’t about diminishing Bitcoin’s value. Quite the opposite. It positions it as the base layer for an entire ecosystem of instruments—stocks, bonds, derivatives—that allow indirect exposure without holding the asset outright. In my experience watching markets, this kind of thinking often bridges traditional finance with emerging assets.
Bitcoin is like crude oil— a hard asset that needs refining into consumer-friendly forms.
The company leading this charge has aggressively accumulated hundreds of thousands of Bitcoin over years, using it as their primary treasury reserve. As of late 2025, holdings exceed 670,000 BTC—an astonishing pile that underscores commitment to this thesis.
Building Financial Products on Bitcoin
How does this commodity view translate into action? Through creative corporate finance, that’s how. Publicly traded shares offer leveraged exposure: when Bitcoin rises, the stock often amplifies those gains due to the treasury strategy.
Then there are convertible notes—debt instruments that can turn into equity later. Billions raised this way have fueled even more Bitcoin purchases. More recently, perpetual preferred stocks in various classes have entered the mix, targeting institutional buyers.
- Class A common stock for retail investors seeking leverage
- Convertible senior notes for debt-financed accumulation
- Multiple preferred stock series for sophisticated players
It’s clever, really. These tools let people gain Bitcoin exposure through familiar Wall Street vehicles. Not everyone wants to custody coins themselves—security concerns, regulatory hurdles, or simple preference for traditional assets keep many on the sidelines. This approach lowers those barriers.
But here’s where it gets thought-provoking: does layering all these products dilute Bitcoin’s original monetary purpose? Or does it actually strengthen its foundation by pulling in massive capital?
The Counterpoint: Bitcoin Remains Money
Not everyone agrees with the pure commodity framing. Prominent economists in the Bitcoin community argue that, at its core, Bitcoin is still money—pristine, hard money that doesn’t need intermediaries or wrappers to fulfill its role.
In conversations with thinkers who’ve written extensively on monetary theory, the consensus emerges that financial innovation doesn’t negate Bitcoin’s monetary properties. It’s more of an academic debate than a practical conflict.
Ultimately, all of that has to be built on a foundation of buying Bitcoin. One way or the other, that just means more and more people buy Bitcoin.
– Noted Bitcoin economist
Consider the broader fiat system. Global money supply grows 7-15% annually, fueled by debt incentives. People and businesses are accustomed to leveraging borrowed funds for everything. As Bitcoin matures, similar dynamics will likely appear—but anchored to actual holdings.
In the long run, this could drive demand higher. To access affordable debt or sophisticated products, entities need pristine collateral: Bitcoin itself. That pushes more capital toward direct ownership, increasing cash balances denominated in BTC.
Why This Matters for Everyday Holders
You might be thinking—this all sounds like high finance, far removed from regular investors. Fair point. But the ripple effects touch everyone in the ecosystem.
When institutions buy exposure through stocks or notes, it still creates buying pressure on spot Bitcoin as the underlying treasury grows. More demand, constrained supply—basic economics that benefits long-term holders.
Plus, these products onboard traditional money that might otherwise stay away. Retirement accounts, pension funds, conservative portfolios—they can participate indirectly, expanding the investor base without forcing self-custody.
- Increased institutional inflows through familiar vehicles
- Greater liquidity and price discovery
- Broader acceptance as a legitimate asset class
- Eventual shift toward direct holdings as understanding grows
I’ve seen this pattern before with gold. Decades ago, most exposure came through mining stocks or futures. Today, physical ETFs and direct ownership coexist. Bitcoin might follow a similar path, with the commodity phase paving the way for monetary dominance.
Potential Risks in the Commodity Approach
No strategy is without downsides. Leveraging debt to accumulate raises eyebrows—especially in volatile markets. A sharp price drop could trigger conversions or margin pressure, amplifying downside.
Counterparty risk also looms. While Bitcoin itself is trustless, layered financial products introduce traditional vulnerabilities: issuer solvency, regulatory changes, market manipulation.
And philosophically, some worry this Wall Street-ification distances Bitcoin from its cypherpunk roots. Does turning it into just another tradable asset undermine the sovereignty it promises?
These are valid concerns. Yet history shows innovation often involves compromise. Early internet ideals gave way to commercial giants, but the core technology still transformed the world.
The Path Toward Monetary Status
Despite the commodity framing today, many believe Bitcoin’s monetary role is inevitable. As fiat debasement continues, hard assets gain appeal. When debt becomes expensive or unavailable, holding unencumbered Bitcoin becomes the rational choice.
Circular economies are already emerging in various regions—retail acceptance, salary payments, remittances. These grassroots developments complement top-down financial engineering.
In my view, both perspectives can coexist productively. The commodity phase brings capital and infrastructure. Over time, as volatility decreases and usability improves, direct monetary use grows naturally.
In the long run, people are going to hold Bitcoin itself.
We’re likely in a transitional period. Financial products act as training wheels, helping traditional minds grasp Bitcoin’s value proposition. Eventually, many will graduate to self-custody and direct transactions.
What History Teaches Us
Look back at previous monetary standards. Gold wasn’t always coins in pockets—it spent centuries as warehouse receipts, banknotes, or sovereign reserves. Only gradually did it circulate widely.
Oil followed a similar trajectory: from wildcat drilling to global commodity markets with futures, ETFs, and refined products. The underlying asset remained scarce and valuable throughout.
Bitcoin, with its absolute scarcity and digital nature, combines the best of both worlds. It can serve as both ultimate collateral and everyday medium—if adoption continues.
The current debate isn’t about choosing sides. It’s about recognizing different stages of maturation. Commodity today, money tomorrow? Quite possibly.
Final Thoughts on the Thesis
Whether you lean toward the money camp or appreciate the commodity strategy, one thing is clear: massive accumulation and innovative finance are driving Bitcoin forward. Hundreds of thousands of coins locked in corporate treasuries send a powerful signal.
For individual holders, the key remains simple—acquire and secure your share. Financial layers come and go, but ownership of the base asset endures.
As this space evolves, staying open to different perspectives keeps us grounded. The beauty of Bitcoin lies in its permissionless nature: anyone can choose their approach—pure money, leveraged play, or something in between.
One thing feels certain: the conversation around Bitcoin’s role is far from over. And that ongoing debate might be the healthiest sign of all.
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