Few financial assets have experienced the dramatic transformation that Bitcoin has undergone—from a highly speculative investment to a potential reserve currency in just over a decade. This evolution continues to spark conversations, with even U.S. presidential candidates considering the nation’s position as a Bitcoin power player.
Caitlin Long, former Morgan Stanley executive and now CEO of Custodia Bank, recently appeared on TheStreet Roundtable to discuss Bitcoin’s growing importance for retail investors. Drawing from her experiences during three different Bitcoin bull cycles, Long also provided insights into common mistakes that investors should avoid. Reflecting on her personal history with Bitcoin, she shared, “I used to pay for Christmas gifts with Bitcoin.”
Bitcoin’s Shift from Payment System to Store of Value
Long emphasized the significant change in how Bitcoin is used today. “It’s no longer a payment system where you can pay for your cup of coffee,” she explained. “It is now a large value payment system, having evolved in the U.S. from a payment method to a store of value.” She believes Bitcoin’s future may include becoming a global reserve currency, which would only enhance its status as a valuable asset.
Empowering Users Through Bitcoin Ownership
One of Bitcoin’s most unique features is the ability it offers individuals to control their own financial data and assets. Long stated, “You have the ability to own your own data, to literally be your own bank with this asset.” She contrasted Bitcoin’s decentralized nature with traditional financial assets like stocks and commodity futures, which are often tied to institutions. This difference is especially appealing in parts of the world where trust in financial systems is low.
In the U.S., many still see Bitcoin as a speculative investment. However, Long warned against relying on centralized exchanges, some of which have failed in recent years. “You need to recognize you’re not owning Bitcoin, you’re owning an IOU,” she cautioned, underscoring the importance of self-custody.
Advocacy for Safe Storage Solutions
As the founder of Custodia Bank, Long has been a strong advocate for secure storage options for Bitcoin users. She consistently urges retail investors to take control of their assets through self-custody, rather than leaving them in the hands of potentially risky exchanges.
While Bitcoin is increasingly used for large-scale transactions, Long noted that developments in “scaling layers on top of Bitcoin” could enable broader adoption for everyday payments. These solutions may be particularly important in regions without stable banking systems, where Bitcoin’s use as a payment method could provide a crucial alternative.
Conclusion
Caitlin Long’s insights reflect the growing role of Bitcoin in the global financial system, as it moves from a speculative asset to a tool for large-scale, high-value transactions. Her emphasis on self-custody and Bitcoin’s potential as a reserve currency highlights the importance of understanding this evolving digital asset. Whether used for high-value transfers or as a hedge against instability, Bitcoin’s place in the financial world is becoming more significant with each passing year.
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