Peng Png on Bitcoin's Underlying Logic: Large Holders Have Become "Landlords," Retail Traders' Leveraged Trading Is Like Paying Rent

BlockBeats News, April 25th, NewFire Group's newly appointed Chief Economist Fu Peng today released a series of tweets on Platform X, breaking down his view of the underlying logic of Bitcoin. Fu Peng stated, the underlying business model of Bitcoin perpetual contracts and ETFs is essentially the same as the "contango fee/overnight fee" in the gold/commodity spot exchanges in traditional finance, where whales earn rent through long-term holding, retail investors pay fees for leverage long positions, and platforms indirectly generate stable cash flow.

Large-scale spot holders are not simply speculating on long positions, but are more like "landlords": holding long-term positions + conducting hedging operations to earn funding rates, continuously reducing holding costs. As long as the position does not shrink, the longer the time, the lower the cost, almost achieving "zero cost or even negative cost". "Many people mistakenly think that whales are only shorting, when in fact they are landlords collecting rent. The basis of CME Bitcoin futures, is essentially the market's pricing of this holding cost/rental fee, which is fully consistent with the logic of spot certificates, financing, and delivery back in the day."

BlockBeats believes that Fu Peng's remarks are not about being bullish or bearish on Bitcoin, but rather narrating Bitcoin's evolution from the perspective of a hedge fund manager: Bitcoin has evolved from a purely emotion-driven speculative asset to a mature asset like gold and commodities, with structural positive returns (rent/funding rates). Whales and platforms are the long-term beneficiaries of this game, and retail investors' long-term enthusiasm for leverage essentially means paying rent to others.