Isn’t Bitcoin’s price manipulated by the wealthy?

Bitcoin’s size and liquidity make large-scale manipulation difficult. With a market capitalization exceeding companies like Tesla and Meta, Bitcoin is more resistant to manipulation than smaller markets or assets. Additionally, Bitcoin’s blockchain is fully transparent, allowing large transactions to be tracked and scrutinized by anyone. While market forces influence Bitcoin’s price, this transparency and decentralized …

Wouldn’t Bitcoin become worthless if the internet shut down?

Bitcoin does rely on the internet for transaction processing, but its infrastructure is designed to be resilient. For example, existing satellite-based systems allow Bitcoin transactions without direct internet access, offering additional layers of robustness. A global internet shutdown would indicate a catastrophic event affecting critical systems worldwide —not just Bitcoin but also banking, communication, and …

Isn’t the Bitcoin market completely unregulated?

While Bitcoin operates 24/7 without the structured hours of traditional markets, this does not mean it is unregulated. Many countries have established clear legal and tax frameworks for Bitcoin. Switzerland is a prime example of how Bitcoin operates within clear legal and regulatory frameworks. While Bitcoin itself is decentralized, the services and platforms surrounding it …

Why should an institution tasked with maintaining monetary stability invest in Bitcoin or other cryptocurrencies?

It’s important to clarify that we are not talking about “cryptocurrencies” in general, but specifically about Bitcoin. Unlike most other digital assets, Bitcoin is decentralized, neutral, and not reliant on any central authority. Holding Bitcoin would diversify the SNB’s reserves with an asset that, like gold, gets its value from its unique properties and scarcity. …

Aren’t Bitcoin investments highly risky, with a significant chance of losing value?

For long-term investments (5+ years), Bitcoin has shown risk levels comparable to or even lower than many of the Nasdaq equities that the SNB already holds. The SNB does not invest with a short-term mindset, so this concern is largely unfounded. If the SNB allocated just 0.1% of its reserves to Bitcoin and Bitcoin’s value …