Zhu Su Reflects on Contributed Capital and the Evolution of the Bitcoin Market

In early February, Zhu Su, co-founder of Three Arrows Capital, shared revealing insights on how contributed capital in the Bitcoin market evolves through different phases of investor participation. According to reports from BlockBeats, Zhu Su’s analysis challenges the conventional perception of the impact of experienced investor exits on the flagship cryptocurrency.

The Positive Role of Capital Rotation

Zhu Su argued that the gradual withdrawal of early shareholders does not indicate a negative outlook for Bitcoin. Since the network’s inception, these original investors have been gradually exiting their positions. Each token release has strengthened Bitcoin’s fundamental health and its long-term monetary value. This steady flow of contributed capital demonstrates a natural and healthy cycle in cryptocurrency adoption.

The co-founder emphasized a critical point: if Bitcoin’s sustainability depended solely on individual purchases or holdings, the network would have collapsed years ago. This observation highlights the importance of a dynamic ecosystem where contributed capital comes from multiple sources and is constantly redistributed.

Perspectives on Prominent Figures and Risks

Zhu Su also provided a penetrating analysis of Michael Saylor of MicroStrategy, noting that his role is limited to being a media figure. Actual investors in MSTR bear the responsibility for the risks associated with the company’s exposure to Bitcoin. This distinction underscores how contributed capital through corporate structures involves risk dynamics different from direct ownership.

Reactivation and Market Failure Comments

After remaining inactive since late September of the previous year, Zhu Su reemerged in late January. His recent comments addressed losses suffered by investors like Yi Lihua and 1011, who reopened positions prematurely after selling at all-time highs. These decisions, driven by overconfidence, illustrate how contributed capital without discipline can lead to adverse outcomes in volatile market cycles.

This analysis by Zhu Su reflects on the importance of understanding how contributed capital is distributed, transformed, and managed throughout Bitcoin’s cycles, offering valuable lessons on the market’s dynamic nature.