Adam Back Shares Hot Take on Bitcoin and DeFi Adoption

Thu, 4/04/2024 – 12:06

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Blockstream CEO Adam Back has advocated for Bitcoin (BTC) while calling for caution against speculating with decentralized finance (DeFi) platforms. He shared his perspective on digital assets with members of the crypto community on the X app.

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Adam Back makes case for Bitcoin asset

In a recent post, Back maintained that the benefits of Bitcoin abound and could just be cold stored as opposed to DeFi. He argues that Bitcoin in itself is viable as an asset with long-term potential as a store of value.

This view aligns with those of Robert Kiyosaki, a popular expert in finance management who believes that with the inflationary trend, it is particularly crucial at this moment to store value in authentic gold, silver and Bitcoin. According to him, “I am a hard, real money, advocate, and I only save real gold, silver, and Bitcoin.”

Back states his skepticism in participating in DeFi games, stating, “Some people are just determined to FAFO on DeFi games. Did we learn nothing? Just buy #Bitcoin and cold store it. That’s enough upside!” 

Back’s comment highlights the potential risks associated with messing around in the crypto space without a proper financial understanding of the intricacies of investing in assets.

Prioritize security and stability

Responding to questions on his strategy on Bitcoin, the cryptographer says he maintains a long-term hold strategy as he is fully convinced of the value proposition of BTC. Thus, even in market cycles when Bitcoin peaks, while other investors sell to buy back at lower prices, Back says he prefers to hold. According to him, “I have a really hard time selling Bitcoin. So, I’m typically perpetually all out of fiat.”

Back, however, is not against diversification of assets. He acknowledges its importance but sounds a note of caution when he states, “Sure I do that also…but not with complex risky DeFi. But like Hodl Hodl, Debificom, or Unchainedcom the tech is simple and robust and you have one key.”

Analysts say Back has adopted a conservative approach to cryptocurrency investment by prioritizing the stability and security offered by Bitcoin over the potential of DeFi. This is despite the signs of a strong recovery after the “Crypto Winter” for the DeFi segment, according to a recent report.

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