The cryptocurrency industry is facing a growing crackdown from regulators around the world. In the US, the Securities and Exchange Commission (SEC) has been particularly aggressive in pursuing enforcement actions against crypto firms.
Although crypto exchanges are not illegal in the UK, the Financial Conduct Authority (FCA) banned the sale of crypto derivatives to retail investors in 2020. In China, the government has banned cryptocurrency trading and mining. The regulatory crackdown is having a chilling effect on the industry, making it harder for crypto firms to raise capital and operate.
Michael Saylor, the former CEO of MicroStrategy stated that the recent clampdown on crypto from a regulatory point of view is good for bitcoin. He believes that it will help Bitcoin become stronger, as it should be. “Crypto crackdown is really good for Bitcoin.”
The reason behind his assertion is that the crackdown that is affecting over 20,000 crypto tokens including stablecoins is making exchanges delist these assets. The effect is that users lose trust in the tokens and move their money into bitcoin which is the most decentralized. “Bitcoin is the ethically sound, technically sound, economically sound crypto asset,” he added. “It’s the king of all the crypto assets.”
He added the strength of Bitcoin is that he sees it as a commodity and not a security. “You can’t serve as global money for the world unless you’re a commodity,” the former CEO noted. Securities are always controlled by an issuer that is made up of a smaller group of people. The more people lose trust in what is available today in the crypto market, the more they will move their money to Bitcoin.
https://cryptotvplus.com/ Good for bitcoin, bad for the cryptocurrency economy. The regulation is seriously hurting the business of creating more coins in the market and facilitating every niche need that a user may have. Plus it puts the industry in an unprecedented stagnation which in a capitalistic economy model such as bitcoin is something that would disable progress, competition, and flourishing within the industry. And it's not like bitcoin could be placed along the seats of stores of value like gold, silver, and oil since those are on a different level and are playing a different game compared to cryptocurrencies.
Michael Saylor also forgot about the fact that people have free will, and could very well choose which asset they'd buy with the money they sold from the cryptocurrencies that are getting banned left and right by governments. Who's to say that Joe right here (a hypothetical person) is going to buy bitcoin, a cryptocurrency that is also existing against the desires of the government, when all his assets that are bitcoin got banned?
Michael needs to read a goddamn economics book and attend psychology classes too. All these baseless shill and damage control's gonna do nothing in the face of a looming problem for the industry.