Rumors about a possible tightening of the Trump administration’s control over users of cryptocurrencies are not without reason, but you should not worry about bitcoin’s long-term future, said Morgan Creek CEO Mark Yusko.
Earlier this week, Coinbase CEO Brian Armstrong expressed concerns that the US Treasury may require cryptocurrency exchanges to verify non-custodial wallets’ owners before withdrawing funds.
Commenting on the rumors about such a “parting gift” for the crypto industry from the current US President’s team, Mark Yusko did not rule out such a scenario. However, he is confident that bitcoin will cope with this threat.
“The financial services industry pays the administration handsomely to create artificial barriers to competition, so the current rumors are not surprising. The bitcoin network is a global and decentralized system that will overcome this threat (like others before it),” Yusko wrote.
CEO Morgan Creek believes that such news can really cause fear in the short term, which is reflected in the fall of quotations. However, on a longer horizon, the destruction of banks ‘ current business models looks inevitable.
@SullyCNBC thanks for having me on the show today
As always, enjoyed the conversation & appreciate you making time to have important discussion about #Bitcoin
Apologies for showing some effects of turkey coma & not making number of key points related to @brian_armstrong tweets
— Mark W. Yusko (@MarkYusko) November 27, 2020
Mark Yusko pointed to the weakening of banks’ competitive position, trying to slow down, introducing new technologies through burdensome regulation. This strategy has been used for many centuries.
He also drew parallels with the events of 2017, when the Chinese authorities imposed a ban on bitcoin exchanges and ICO. The Chinese authorities’ steps led to a 20% drop in bitcoin and numerous conversations about its “death.”
That year, the first cryptocurrency ended with a five-fold increase after a correction. Activity moved to other countries, and bitcoin adoption continued.
In such situations, the CEO of Morgan Creek believes it is important to focus on investment, not speculation. Against the background of such rumors as tighter regulation in the United States, the price may deviate even more from the fundamentally sound value. His advice is to hold and not react to volatility.