I wrote here that the best future for bitcoin and crypto will come when the government pays attention, and helps them, by regulating the sector. Bitcoin and cousins are software-currencies – and humans make software. Because humans are centralized in the formation and utilization of factors of production, within the ordinances set by governments, Bitcoin cannot operate on the illusion of technical decentralization.
Yes, when inflation hits or recession is loading, Bitcoin feels the pain because some cryptos would need to be saved. Most crypto “investors” typically use Bitcoin (BTC) for collateralization when they design those nonsensical margin plays. So, if one low-quality crypto begins to struggle, they need to release their BTCs to cover their margins. And just like that, BTC will get into the mix. BTC can also be saved by USD!
And do you know the most troubling part? In those cryptos, some privileged investors do wash trades (illegal in regulated assets), and get away with them because the assets are not regulated. In other words, no one is watching those trades (using multiple brokers to inflate and dump)!
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Microstrategy has become well known in the world of corporate finance for its monster holdings of Bitcoin. With crypto in free-fall, however, BTC has become quite the liability for shareholders. Now, CEO Michael Saylor wants the government to step in, most likely to preserve the firm’s bottom line. His plea to regulators: Crack down on crypto industry’s shaky practices—the “parade of horribles” as he describes it—that are dragging down the price of Bitcoin (Fortune).
The CEO of MicroStrategy, Michael Saylor, has seen enough and is asking the government to come and help the sector: ‘His plea to regulators: Crack down on crypto industry’s shaky practices—the “parade of horribles” as he describes it—that are dragging down the price of Bitcoin’.
MicroStrategy invests in Bitcoin; due to the paralysis in Bitcoin, its shares have fallen from a 12-month high of $891 to $184.
What an irony – the world of decentralized crypto now needs a centralized government to help.
Speaking in a webcast with NorthmanTrader founder Sven Henrich, Saylor said Bitcoin was being caught in the crossfire of a collapsing crypto market since it often served as collateral on margin loans for less proven tokens.
“What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure, and they are all cross-collateralized with Bitcoin,” he argued
The Biggest Irony in Bitcoin: It Needs Government Protection To Thrive
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Government has more than enough on its plate already, they should live government alone, except they can prove how creating cryptos help in proper running of the universe. The whole essence was about freedom, so they can as well enjoy the freedom into oblivion.
When scammers scam scammers, it is considered a fair deal. It’s either you are under government or you sort yourself out, there is no middle ground.
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