Top cryptocurrency analyst Willy Woo took to X on Tuesday to express his thoughts on how the economy functions as an engine, transforming raw materials and energy into goods and services.

He also shared his perspective on the interplay between thermodynamics, physics, and economics, and its implications for Bitcoin’s future, countering economist Steve Keen‘s recent warning that Bitcoin (CRYPTO: BTC) will go to zero.

He emphasized the correlation between a country’s GDP and its energy consumption, stating that the only way to secure hard money is through energy. He further explained that due to the competition for energy by the economy, it will always be scarce.

Woo likened the traditional reliance on scarce physical assets like gold to create "hard money" with Bitcoin, arguing that gold's long-standing advantage may not hold in the future. He said advances such as scalable space travel or nuclear fusion, which could enable the creation or transformation of atoms, could erode gold's scarcity.

In contrast, he argues that Bitcoin's proof-of-work produces hard money backed by energy, which is scarce due to economic competition.

“BTC is built on foundations that will scale as technology climbs the Kardashev scale,” he wrote.

Bitcoin Defies Risk Asset Trend

ProCap Financial CEO Anthony Pompliano highlighted Bitcoin’s stable performance during the Iran conflict, as stocks, bonds, and gold sold off, echoing Woo’s argument of the cryptocurrency’s resilience. Pompliano said Bitcoin's recent divergence from other risk assets challenges the idea that it simply trades as a high-beta asset, suggesting investors view it differently during geopolitical turmoil.

Over the past month, Bitcoin surged 7.68%, currently trading at $71,761.83.

However, Woo had dismissed the idea of institutions pouring trillions into Bitcoin overnight, predicting a more gradual buildup instead. This aligns with his recent views on the role of energy in securing hard money and the potential of Bitcoin in the evolving economic landscape.

However, another leading cryptocurrency analyst, Ali Martinez, identified Bitcoin’s “Ultimate Support” at $47,960, suggesting a potential price floor before a major reversal.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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