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Regulation and Bitcoin’s Potential Dominance
MicroStrategy co-founder Michael Saylor anticipates that regulatory interventions in the U.S. targeting cryptocurrency firms might eventually cultivate a Bitcoin-centric industry, pushing Bitcoin's price beyond $250,000.
In a recent Bloomberg interview held on June 13, Saylor, a renowned Bitcoin advocate, explained that Bitcoin stands to benefit from the enforcement actions taken by the Securities and Exchange Commission (SEC). He emphasized that Bitcoin is the only cryptocurrency that SEC Chair Gary Gensler excludes from the definition of a security.
US Regulatory Stance on Cryptocurrencies
According to Saylor, U.S. regulators don't foresee a clear trajectory for cryptocurrencies. He stated that they "don't have any love" for stablecoins, crypto tokens, or crypto-based derivatives.
He went on to propose that cryptocurrency exchanges would play a critical role in propelling a significant price surge:
Bitcoin’s Future in the Crypto Industry
According to Saylor, the SEC envisions cryptocurrency exchanges to trade and hold pure digital commodities such as Bitcoin. He suggested that the industry seems set to streamline itself into a Bitcoin-focused industry with a handful of other proof-of-work tokens.
The next logical progression, according to him, would see Bitcoin multiplying its value tenfold, not once, but twice.
Bitcoin’s Rising Market Share
In 2023, Bitcoin's market share rose from 40% to 48%, a surge that Saylor attributed partially to the SEC’s enforcement activities. This activity resulted in the classification of 68 cryptocurrencies as securities — none of them being proof-of-work.
Saylor predicts an increase in this dominance to 80%, driven by "mega institutional money" inflow into crypto, once the prevailing "confusion and anxiety" around the sector subsides.
Criticism against Bitcoin-Centric Advocacy
Saylor, along with other Bitcoin-centric advocates, has faced significant backlash. Anthony Sassano, host of The Daily Gwei, recently criticized "Bitcoiners" who appeared content with the SEC filing lawsuits against Coinbase and other exchanges that list tokens that the agency deems as unregistered securities.
Furthermore, several players, including the team behind the Ethereum-based wallet MetaMask, hold the belief that a "multichain future" is inevitable given the different functions served by various blockchains.
Potential Dangers Ahead for Bitcoin
Finally, in January, economist Lyn Alden told Cointelegraph about the potential risks that Bitcoin may face in the latter half of 2023. She stated that the resolution of the U.S. debt issue could lead to a significant withdrawal of liquidity from the markets, creating a vulnerable time for risk assets, including Bitcoin.
