Bitcoin: The dazzling bubble or the future of money?

Bitcoin: The dazzling bubble or the future of money?

Bitcoin has experienced a remarkable rise since its launch in 2008, and as of today, May 21, 2025, the price has surpassed the 90,000 franc mark. This corresponds to an increase of over 11 million percent since the beginning, when Bitcoin only cost 0.8 cents. These numbers raise questions about the true value of cryptocurrency and the underlying mechanisms.

The way Bitcoin works is often explained in the context of the so-called “Greater Fool” phenomenon. Buyers invest in Bitcoin in the hopes of later selling it at a higher price, regardless of the currency's actual utility. This has already been criticized by Warren Buffett, who argued that cryptocurrencies essentially have no real value because they exist simply to be sold. The risk for investors could increase in the future due to stricter regulatory frameworks, further fueling the discussion about the long-term value of Bitcoin. Fuw.ch reports that Bitcoin also offers no interest or dividends and is not linked to entrepreneurial success.

Value and Application

However, Bitcoin has also gained acceptance in recent years. BlackRock launched the first Bitcoin ETF in 2024, which is considered a crucial step for the cryptocurrency's widespread acceptance. Cantonal banks and pension funds in Switzerland are also increasingly investing in Bitcoin. A current initiative committee is even aiming for the Swiss National Bank to hold Bitcoin as a reserve currency. This could prove to be a significant shift in the financial sector.

Bitcoin's annual return is an impressive 160%, 20 times higher than Roche's, and the total value of all Bitcoins rose from 0.00168 to 1,900 billion francs in less than 17 years. Forecasts see the Bitcoin price at $180,000 to $200,000 this year. However, despite these optimistic views, Bitcoin is largely viewed as a speculative tool and its use as a means of payment remains limited.

Present versus future

The crypto community is strongly networked and is actively trying to attract new investors. While Bitcoin is currently being used as “digital gold” – to secure savings outside of traditional currency areas and to process transactions quickly – analysts acknowledge the current limitations. Bitcoin has a fixed maximum supply of 21 million, meaning supply does not increase even if demand increases.

However, the perspective in the crypto world also shows a vision for the future where money moves at the speed of text messages and financial accessibility is guaranteed for all. Estimates suggest that Bitcoin's value could potentially explode if a small percentage of assets held in physical gold are shifted into Bitcoin. This adds an additional dimension to the discussion about Bitcoin's value beyond the current market price. Forbes reports that Bitcoin's current applications could be just the beginning.