Bitcoin's dominance will almost double as regulators limit other cryptocurrencies, MicroStrategy's Michael Saylor says
Microstrategy
- Bitcoin's market dominance will nearly double, MicroStrategy's Michael Saylor said.
- That's as the regulatory crackdown will remove a number of other tokens, he told Bloomberg TV.
- "Now I think that the public is beginning to realize that bitcoin is the next bitcoin."
The regulatory crackdown on cryptocurrencies could be a windfall for bitcoin, which will nearly double its market share, MicroStrategy co-founder Michael Saylor told Bloomberg TV.
In this year alone, bitcoin's share of the crypto industry's overall market capitalization has gone from 40% to 48%, he said. But with regulators targeting other tokens, bitcoin's dominance will to grow to 80%, he added.
"Now I think that the public is beginning to realize that bitcoin is the next bitcoin," Saylor said. "The next logical step is for bitcoin to 10x from here and then 10x again."
He has been a long-time bitcoin bull, and his enterprise software company has bet heavily on the token, amassing a stockpile of about 140,000 bitcoin.
Meanwhile, the Securities and Exchange Commission asserted new pressure onto the crypto scene earlier this month, charging top exchange Binance with 13 violations of US law. Alongside this, it sued rival crypto exchange Coinbase with a failure to register under the SEC.
In the SEC's view, tokens worth $120 billion are unregistered securities, making it illegal for the exchanges to offer them.
In its lawsuits, the regulator laid out 19 tokens under scrutiny. In response, other trading platforms such as Robinhood and eToro removed a number of them.
The industry has interpreted the regulatory moves as reaffirmation that bitcoin is not considered a security and won't fall under the crackdown.
"I mean, their view is crypto exchanges should trade and hold pure digital commodities like bitcoin," Saylor said of the SEC. "And so the entire industry is kind of destined to be rationalized down to a bitcoin-focused industry, with maybe a half a dozen to a dozen other other proof-of-work tokens."
Saylor's comments are an extension of his previous take at the end of May, when he said bitcoin had bottomed out and was at the start of a significant bull run.
Bitcoin is expected to receive another tailwind next year. The so-called halving, which is due next in April 2024, will cut in half the rate at which new coins are released as well as the reward given to miners for their work in processing transactions.
It's done to eventually cap the token's total supply at 21 million units and is considered bullish for the price.