The fate of the crypto industry appears to be increasingly heading towards a Bitcoin (BTC)-focused future, due to the actions of regulators such as the Securities and Exchange Commission (SEC). According to MicroStrategy co-founder Michael Saylor, enforcement actions by regulators in the United States could result in a BTC-focused industry, potentially pushing BTC’s price over $250,000.
Saylor’s views are based on his observation that US regulators seem to have no love for stablecoins, crypto-tokens, or crypto-based derivatives, and believe that crypto exchanges should trade and hold pure digital commodities like BTC. He argues that the entire industry is “kind of destined to be rationalized down to a Bitcoin-focused industry with maybe a half a dozen to a dozen other proof-of-work tokens.”
However, Saylor’s assertions have been met with criticism by many in the crypto community. The Daily Gwei’s host, Anthony Sassano, recently called out “Bitcoiners” pleased to see the SEC file lawsuits against Coinbase and other exchanges listing tokens. Furthermore, Ethereum-based wallet MetaMask, amongst others, firmly believes in a “multichain future,” as various blockchains serve different purposes.
On the other hand, some analysts predict an impending “deflationary bust” may imapct commodities market and bank deposits, with crypto potentially becoming the next domino to fall. Economist Lyn Alden has also warned of “considerable danger ahead” for BTC in the second half of 2023. If the U.S. resolves its debt issue, significant liquidity would be pulled out of markets, making BTC and other risk assets vulnerable.
As these discussions continue, it is clear that differing opinions shape the crypto community. While some strongly advocate for the benefits of a Bitcoin-centric outcome, there remains an underlying skepticism towards a one-size-fits-all approach for all cryptocurrencies. As regulators such as the SEC continue to scrutinize the industry, only time will tell how the landscape will evolve.
Source: Cointelegraph
