Traditional Finance Underestimates Bitcoin! A Fatal Mistake?

Bitcoin is experiencing rapid growth in 2024. Nevertheless, many traditional finance players remain unaware of this revolution. This situation creates a unique opportunity for visionary companies that embrace this new financial reality.

Bitcoin: ignorance that costs traditional finance dearly

Traditional finance largely underestimates the magnitude of the Bitcoin phenomenon. Jenny Johnson, CEO of Franklin Templeton, recently highlighted this lack of awareness, stating: “What is crazy to me is that in traditional finance, they have no idea of the amount of money and volume [of bitcoin]”. Furthermore, traditional finance recently lost $2000 billion, which further underscores the importance of understanding and integrating digital assets.

This ignorance is all the more striking as the numbers speak for themselves. In 2023, the Bitcoin blockchain processed more than $36.6 billion in transactions. In comparison, Mastercard and Visa only managed $9 billion and $14.8 billion respectively over the same period. These data clearly demonstrate the growing importance of crypto in the global financial ecosystem.

Nevertheless, some companies are starting to adapt. For example, Mastercard has partnered with MetaMask and Baanx to launch a crypto debit card. Similarly, Franklin Templeton launched the first fund using a public blockchain to record transactions and ownership.

The pioneers who are shaping the future of crypto

While some traditional players are slow to react, other companies are fully seizing the opportunities offered by crypto. Franklin Templeton, under the leadership of Jenny Johnson, is positioning itself as a leader in this field, dedicating about 30% of its time to studying disruptive technologies, including Bitcoin and artificial intelligence. 

Moreover, the company recently proposed to the SEC to launch the EZPZ ETF focused on digital assets. At the same time, Cipher Mining is experiencing impressive growth thanks to its operational performance and energy efficiency, planning to improve its production by upgrading its mining fleet.

Bitcoin is redefining global finance. While many traditional players remain blind, visionary companies are leading the way. With Bitcoin rising to 56.2% and again dominating the crypto market, it is crucial for investors and institutions to stay informed and open to the opportunities offered by cryptocurrencies.