Opinion: Bitcoin will withstand an attack by banks

There is some merit to rumors that the Trump administration might tighten controls over cryptocurrency users, but there is no need to worry about Bitcoin’s long-term prospects, said Mark Yusko, CEO of Morgan Creek.

Earlier this week Coinbase CEO Brian Armstrong expressed concerns that the US Treasury might require cryptocurrency exchanges to verify owners of non-custodial wallets before withdrawals.

Commenting on rumors of such a “parting gift” for the crypto industry from the team of the current US president, Mark Yusko did not rule out such a scenario. However, he is confident that Bitcoin will cope with this threat as well.

«The financial services industry pays the administration handsomely to create artificial barriers to competition, so current rumors are not surprising. The Bitcoin network is a global and decentralised system that will overcome this threat (as others before).» — wrote Yusko.

In summary, Administration is paid handsomely by financial services industry to create impediments to competition so current rumors not surprising or unexpected#Bitcoin network is global, decentralized system that will overcome this threat (just like others before)#BuyAndHODL

— Mark W. Yusko (@MarkYusko) November 27, 2020

The Morgan Creek CEO says that in the near term such news could indeed trigger fear, reflected in a fall in prices. However, over the longer horizon the disruption of banks’ current business models seems inevitable.

Yusko pointed to banks’ waning competitive positions as they try to slow the adoption of new technologies through burdensome regulation. Such a strategy has been employed for centuries.

He also drew parallels with 2017, when Chinese authorities banned Bitcoin exchanges and ICOs. These steps by Chinese authorities led to a 20% fall in Bitcoin and numerous discussions of its “death.”

That year Bitcoin posted a fivefold gain after a correction. Activity moved to other countries, and Bitcoin adoption continued.

In such circumstances, the Morgan Creek CEO says it is important to focus on investments rather than speculation. In light of such rumors, including tighter regulation in the United States, the price could deviate even more from its intrinsic value. His advice is to hold and not react to volatility.

As noted, macro investor Paul Pal faced criticism for his statements that the future of cryptocurrencies is not tied to anonymity and that as they are adopted they will be regulated and taxed.

Subscribe to ForkLog news on Telegram: ForkLog FEED — full feed of news, ForkLog — the most important news and polls.