Potential of L1 Tokens as a Hedge Against Bitcoin Risks

According to PANews, Alliance DAO co-founder QwQiao recently shared insights on the X platform regarding the potential of L1 tokens as a non-sovereign store of value. He suggested that if L1 tokens have the potential to serve this purpose, it indicates their prices are not significantly overvalued and could act as an effective hedge against Bitcoin. QwQiao highlighted two major risks Bitcoin might face in the coming decades: security budget and quantum resistance. He noted that Bitcoin's rigidity might hinder its ability to address these challenges swiftly. Despite these concerns, QwQiao expressed his belief that Bitcoin remains the best non-sovereign currency and the asset most likely to replace gold. However, he pointed out that these risks provide a compelling reason to consider holding L1 tokens. Previously, Alliance DAO co-founders mentioned that L1 tokens lack a protective moat, suggesting that focusing on the application layer might be a viable strategy.