Bitcoin is a rare asset class that has achieved extraordinary growth, with a market capitalization exceeding $1 trillion, according to Mr. Trần Dinh, CEO of Alphatrue.
This statement was made by Mr. Trần Dinh, CEO of Alphatrue and Chairman of the Fintech Application Committee at the Vietnam Blockchain Association (VBA), during the Blockchain & AI – The Future Revolution event held by VBA on April 24 in Hanoi. The event took place in the context of Bitcoin’s growth rate of 12,464% over the past 10 years, vastly outpacing technology giants such as Tesla (3,335%), Amazon (1,063%), and Alphabet (525%).
Representatives from VBA noted that the approval of the Bitcoin Spot ETF by the U.S. Securities and Exchange Commission (SEC) in January marked a historic turning point, reinforcing Bitcoin’s long-term value and opening the door for institutional investors to access Bitcoin more easily and safely. This was a major event, with participation from 11 major investment funds, including world-leading financial names such as BlackRock and Fidelity.
The launch of the Bitcoin Spot ETF has created a strong wave of investment, with daily trading volumes reaching nearly $10 billion on March 5 in the U.S. stock market, according to data from The Block. As of now, the cumulative total of transactions has surpassed $250 billion.
On the other hand, Mr. Dinh believes that the fourth Bitcoin Halving event, which took place on April 19, will enhance the network’s security while continuing to drive the value of Bitcoin and attract more new investors. The impact of Halving is not only technical but also reflected in the maturity and development of the ecosystem, as well as in its widespread acceptance within the financial system.
To illustrate sustainable growth, Mr. Dinh pointed out that the Bitcoin block reward has halved with each Halving event, making the cryptocurrency increasingly scarce, much like gold. This scarcity could also create upward price pressure as the demand for holding Bitcoin continues to rise.
Despite being cautious about regulatory and security risks, institutions remain confident in the profit potential and portfolio diversification offered by digital assets. Large companies like MicroStrategy have invested over $4 billion in Bitcoin, while Tesla holds Bitcoin worth more than $1 billion. Notably, global banks such as JP Morgan and Wells Fargo are among the latest to announce investments in Bitcoin through Bitcoin Spot ETFs.
In addition, a 2023 report by the Big Four audit firm EY-Parthenon reveals that 35% of organizations allocate 1-5% of their investment portfolios to digital assets, while 69% plan to increase investments in the next 2-3 years. Notably, 45% of organizations with assets under management (AUM) exceeding $500 billion have invested more than 1% in digital assets. Smaller organizations, on the other hand, tend to allocate a larger proportion of their portfolios. Currently, Bitcoin (BTC) and Ethereum (ETH) are the most popular digital assets. These figures indicate a significant flow of capital from traditional institutional investors into the market.
According to Mr. Dinh, blockchain technology—the foundation of Bitcoin—is also being applied across various sectors. A 2023 survey by CasperLabs, which polled over 600 business leaders in the US, UK, and China, highlights optimism regarding the adoption of this technology. Nearly 90% of businesses have implemented blockchain to some extent, and 87% plan to invest in the technology this year. Major banks such as JPMorgan and Goldman Sachs are also developing services related to digital currencies.
Despite the potential risks such as price volatility, regulation, security, and market manipulation, these challenges are gradually being addressed, particularly as many countries are establishing legal frameworks for digital currencies.
“Bitcoin will become a store of value, and over time, investors will only bring valuable assets onto the Bitcoin blockchain network,” Mr. Dinh predicted.
Launched in 2009 with the whitepaper by Satoshi Nakamoto, Bitcoin was initially known only within the community of technology and cryptography enthusiasts. One of the most memorable milestones was the first transaction using Bitcoin in 2009, when 10,000 BTC were exchanged for two pizzas—an event later referred to as “Bitcoin Pizza Day.” At that time, Bitcoin’s value was virtually nonexistent, and its use as a medium of exchange was extremely limited.
Bitcoin went through a dark period when it was exploited for illicit activities, most notably with the FBI’s shutdown of the Silk Road dark market in 2013 and the Mt. Gox exchange hack in 2014. However, these events inadvertently pushed the Bitcoin community to improve the system, enhance security, and raise awareness about cybersecurity.
The launch of Ethereum in 2015, which improved upon Bitcoin with the introduction of smart contract technology, opened up many new applications for blockchain and attracted more attention from businesses and financial institutions. In the same year, the launch of the cryptocurrency exchange Coinbase marked another significant step in integrating Bitcoin into the traditional financial market.
Over the years, amid constant volatility, the decentralized finance (DeFi) market exploded in 2021, with the Total Value Locked (TVL) reaching nearly $200 billion, creating a strong wave of investment into digital assets and pushing the market capitalization to a record high of over $3 trillion by the end of the year.
However, the rapid and unchecked growth led to turmoil within less than a year, before the market began to stabilize in recent times. Notable examples include the collapse of the algorithmic stablecoin ecosystem UST-LUNA in May 2022 and the bankruptcy of the second-largest cryptocurrency exchange at the time, FTX, which caused nearly $10 billion in losses, affecting millions of victims. Additionally, several other bankruptcies had a negative impact on the U.S. banking system.