The recent price crash of bitcoin and a host of other altcoins hasn’t shaken its enthusiasts and preachers alike proclaiming the enduring power to change the way we do business and spend money. The proliferation of bitcoin wallets, the 576% increase in cryptocurrency sales on the best crypto exchanges are signs, despite the decline that does not seem to be recovering, that the cryptocurrency industry is here to stay, and for a long time.
Michael Saylor, CEO of microstrategy, a company that provides users and customers with business insights and analytics, says the future of bitcoin is bright and he believes blockchain-inspired currency is technically, politically and economically viable. solid.
While many would agree with Saylor’s opinion, there are many reservations about bitcoin’s viability, especially given the recent price drop.
WHAT TRADERS AND INVESTORS SAY – AND DON’T SAY
Bitcoin saw a sudden surge in adoption, even with the fall in bitcoin price. Businesses are buying bitcoins by the millions, and this, when analyzed carefully, portends better days for the number one cryptocurrency industry.
It was only recently that Warren Buffet invested $1 billion in NeoBank, a pro-bitcoin bank. His financial backing shows that one of the best investors in the world believes in bitcoin values and is therefore investing in it.
However, the sentiment is not as strong among everyday traders and investors.
The drop in price from a high of $67,000 in October 2021 to a low of $35,000 at the time of this writing, has many skeptical about the currency.
Although the recent attacks on DeFi platforms are not targeting bitcoin or any of the major cryptocurrencies with high market caps, there are brewing sentiments in various quarters that bitcoin, and the cryptocurrency in general, may not be the currency savior that many had hoped for.
WHAT DOES SAYLOR SAY ABOUT BITCOIN?
The conversation around bitcoin and digital currency circles has been about regulation. Regulators are constantly running the dogs, according to many investors, to take control of bitcoin. The beauty of bitcoin is its decentralization and the fact that the government has no power over its use, distribution, and supply.
However, over the past few years, regulators have been looking for ways to regulate the space, claiming that the lack of regulation of the space is detrimental to its growth and sustenance in the years to come.
And with more institutions and business gurus investing in bitcoin and other cryptocurrencies, it’s only fitting that some are calling for regulations to be implemented.
Michael Saylor welcomes regulators into the cryptocurrency space very well.
Saylor says cryptocurrency doesn’t have a clear definition, a statement that didn’t sit well with some crypto enthusiasts.
According to him, many people do not know what bitcoin is and what bitcoin exchange represents.
Yes, it’s decentralized, he agrees, but a lot of vagueness still persists about what bitcoin is.
Is it a store of value?
Is it a digital currency?
What are the regulations governing crypto exchange platforms such as https://redot.com? Do they work the way they want or do they need to be regulated by special crypto-related laws?
Are there even specific cryptocurrency laws?
These questions are why Saylor called on regulators to get more involved in bitcoin and establish rules and regulations for cryptocurrency.
WHAT DOES BUSINESSMAN MEAN?
Michael Saylor’s cry is no exaggeration given the skepticism many have about investing in crypto. The leaps and bounds that crypto has taken are without its naysayers who don’t believe cryptocurrency will be around for the long haul. According to the crypto investor, with regulators involved, more institutions will adopt bitcoin.
Institutions adopting bitcoin will mean that adoption will spread faster, and its spread will eventually make bitcoin legal tender in many parts of the world; many businesses may start accepting bitcoin for payment.
Furthermore, Saylor’s concerns about the proper definition deserve critical consideration.
There is no clear definition of what bitcoin is. Many think it is a store of value, others are convinced it is a digital property.
Which is it?
We cannot make progress in bitcoin adoption if these gray areas persist. While decentralization is an amazing concept, the recent attacks against OpenSea and other DeFi platforms are ringing alarm bells. Many are unsure if they have any, and if what they have is a currency or a digital asset.
Many institutions that buy bitcoin believe it is a store of value, just like gold and silver. However, some believe bitcoin should be used to pay for goods and services, as some countries are currently doing.
If these definitions are not clearly stated, there is a good chance that we will remain in the realm of uncertainty for a long time and thus slow down its adoption.
However, the reality on the ground – and history strongly supports this reality – is that bitcoin adoption is the fastest adoption of any technology in recorded human history.
So if bitcoin and blockchain technology is adopted so quickly, will a definition of what bitcoin is and all the unclear areas speed things up?
Will people be more interested in bitcoin adoption if regulators give clear definitions to these things?
Or is it necessary for regulators to get involved in bitcoin and cryptocurrency for the benefit of uncertain institutions?
If bitcoin and cryptocurrency were developed for the common man seeking to have financial freedom, isn’t the goal defeated if regulators get involved and control the system?
These questions, and many more, are what bother many investors; this is why regulators entering space are frowned upon.
But we can’t ignore the kind of influence regulators have on bitcoin adoption.
The Spot ETF approval encouraged more investors to buy and invest in bitcoin. Even with bitcoin’s price crashing, statistics show that many wealthy families, 77% of family offices, are buying bitcoin, and for those families not buying, it’s expected to buy.
So surely Saylor’s concerns are valid.
Although bitcoin is economically, technically, and politically sound, some form of regulation is needed to help maintain its value in the future. Okay, currency is still relatively new and mistakes will be made in formulating and implementing regulations, but with an open mind we expect regulators to help clean up, somewhat, an almost brainless.