At this point, Michael Saylor, the CEO of Microstrategy, has become one of the most important and influential figures in the crypto space.
Although Saylor has only been heavily involved in the last six months to a year, his commitment and insights into Bitcoin are highly coveted by the industry.
Saylor recently appeared on SALT Talks, a crypto talk show hosted by the SALT credit platform, with some interesting insights into his thoughts on the future of Bitcoin and institutional investors.
Additional regulation can increase investor confidence
In terms of the financial industry, Bitcoin and all cryptocurrencies collectively are viewed as a high risk, wild west asset class.
We have seen countless stories of users who have lost hundreds of millions of dollars worth of Bitcoin and cryptocurrencies without virtually regaining control of their assets. This is where Saylor thinks regulation is useful as it can develop a methodology that will allow Bitcoin to be stored and traded more securely.
A good example of this can be found in GBTC, the Grayscale Bitcoin Trust, which allows investors to get exposure to Bitcoin while remaining fully regulated. Grayscale is an SEC compliant company that provides security and insurance to its customers. This has resulted in its assets under management growing from $ 2 billion to well over $ 20 billion in the past 12 months.
A fully regulated platform enables institutions and high net worth individuals to get involved while reducing their overall risk.
As Saylor says in the interview, “To the extent that we have regulated companies trading Bitcoin, I think that will only accelerate the onslaught of institutional money in Bitcoin.”
Microstrategy relies heavily on Bitcoin
It shouldn’t surprise anyone that Saylor talks so much about Bitcoin. He and his company are highly exposed to the asset. Microstrategy has bought over $ 1 billion in BTC with its cash reserves and even bought another $ 10 million worth near the $ 30,000 price range.
Though Saylor has a lot to gain from the introduction of Bitcoin, his points of regulation may be right – even if they are not what the anti-centralization-minded part of the community might want.
For the time being, cryptocurrencies will remain relatively unregulated with safekeeping options right down to the end users. However, increased regulatory engagement in this sector could give the asset class a veil of legitimacy and trigger a greater boost from institutional investors.
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