MicroStrategy’s co-founder Michael Saylor purports that Bitcoin could rise to prominence amidst increased regulatory measures targeted at the cryptocurrency industry.
In a mid-June discussion with Bloomberg, Saylor stressed that the regulatory landscape in the United States could inadvertently streamline the industry to center more on Bitcoin, currently the only digital currency that SEC Chair Gary Gensler does not categorize as a security. He suggested that such developments could contribute to a surge in Bitcoin’s value, potentially crossing the quarter-million-dollar mark.
He noted that U.S. regulators are demonstrating hesitancy towards a broad range of cryptocurrencies, exhibiting particularly negative sentiments towards stablecoins, and derivatives with a crypto base.
Saylor proposed that Bitcoin’s ascendancy could be facilitated by cryptocurrency exchanges. He observed, “It seems that regulators prefer exchanges that trade and maintain pure digital commodities like Bitcoin. This could point towards an industry shift that centralizes around Bitcoin, potentially complemented by a limited number of other proof-of-work tokens.”
Saylor’s outlook anticipates Bitcoin’s value increasing exponentially. He highlighted Bitcoin’s growing market share in 2023, observing an increase from 40% to 48%. This could be partially attributed to the SEC’s regulatory activity, including their classification of 68 digital currencies as securities, none of which belong to the proof-of-work category.
Looking ahead, Saylor predicts Bitcoin’s share to rise to 80% as substantial institutional investments begin entering the crypto market, helping to alleviate the current climate of “confusion and anxiety.”
However, this Bitcoin-centric viewpoint has been met with robust criticism. Anthony Sassano, host of The Daily Gwei, recently voiced his displeasure with “Bitcoiners” who appear to welcome the SEC’s legal actions against exchanges, such as Coinbase, that list tokens regarded as unregistered securities.
Simultaneously, the team behind Ethereum-based wallet MetaMask, among others, advocate for a “multichain future,” arguing that different blockchains serve distinct purposes.
Bloomberg Intelligence’s leading macro strategist Mike McGlone warned about a potential “deflationary bust” impacting the commodities market and bank deposits, suggesting that the crypto industry could be next in line.
Adding to the debate, economist Lyn Alden revealed her concerns about potential risks for Bitcoin towards the end of 2023. She expressed that resolving the U.S. debt issue could lead to a substantial withdrawal of liquidity from the markets, thereby endangering assets, including Bitcoin.
Such forecasts contribute to the dynamic dialogue surrounding the regulatory measures in the cryptocurrency industry. With the landscape evolving rapidly, the actions of regulators and their impact on different cryptocurrencies will undoubtedly be closely watched.