It looks like bitcoin has reached a new pinnacle in the U.S. government. For a long time, many Americans have been worried that the country is looking to shut down bitcoin operations, but now it looks like these fears are ready to subside.
Bitcoin Is Likely Here to Stay
Figures like current president Donald Trump have stated in the past that they aren’t fans of bitcoin given that they thought the currency’s value was based on thin air. In addition, according to John Bolton’s book, Trump has been going after bitcoin since the year 2018, though this probably should be taken with a grain of salt.
Still, given the currency’s decentralized nature, many consider bitcoin and the world of crypto to be threats to standard banking institutions, but now Barry Silbert – chief executive of the Digital Currency Group – says that Wall Street and the U.S. government have gotten much more comfortable with bitcoin over the years, and individuals don’t need to worry about the currency being shut down in the western hemisphere.
In an interview, he states:
For the first time ever, we’re past the ‘ban bitcoin’ perceived risk. There’s enough support among policy makers and regulators that bitcoin has a right to exist and you can’t shut it down. The industry is doing well and we’re much better off than we’ve ever been from a relationship perspective thanks to the work being done to educate policy makers of the benefits of this asset class. The catastrophic policy risk is behind us.
At this stage of the game, bitcoin has enough support from all corners to remain in business, it seems. Some of the biggest support appears to be coming from institutional players, who for a long time, were alleged to be staying away from the crypto space given the volatility of digital assets. However, as Grayscale has recently reported, the company’s second quarter saw more than $1 billion in total BTC investments from institutions, so their presence is no doubt expanding.
In addition, bitcoin has a massive advantage in that it is reportedly far more private and decentralized than the methods utilized by standard banks. Silbert believes this is what will bring many people aboard the bitcoin bandwagon as they seek to regain financial control of their futures.
Banks Aren’t Private Enough
There’s such a risk associated with centralized databases. I think privacy will become a core investing theme for investors who want to benefit from the growth and awareness of decentralization.
Still, if bitcoin is to reach mainstream status for users, something will have to be done to ensure it is not at the center of events like what happened with Twitter last week, which no doubt did some damage to the reputation of the world’s largest cryptocurrency by market cap.