June 14, 2023 at 11:43 GMTModified date: June 14, 2023 at 11:43 GMT
June 14, 2023 at 11:43 GMT

Crypto facing ‘Bitcoin-focused industry’: Saylor

MicroStrategy co-founder Michael Saylor has told Bloomberg in an interview that the industry is tilting towards a Bitcoin-focused one in light of recent events.

Bitcoin. Pic: Unsplash

MicroStrategy co-founder Michael Saylor has told Bloomberg in a recent interview that the industry is tilting towards a Bitcoin-focused one in light of recent events.

Saylor has stated that he is confident his company’s stance on digital assets is in line with this emerging trend.   

“MicroStrategy’s views since 2020 have been that the only institutional grade asset is Bitcoin. Bitcoin is the universally globally acknowledged digital commodity in this industry,” he said. 

Saylor further expressed pessimism in the future of crypto from a regulatory standpoint. He believes that the industry will undergo a process of consolidation, leading to a future where Bitcoin dominates as the primary cryptocurrency. He also anticipates that only a select few other tokens will survive and maintain relevance in a Bitcoin-focused industry.

“It’s pretty clear that the regulators don’t see a legitimate path forward for cryptocurrencies,” he continued.

Saylor’s comments come on the back of recent lawsuits filed against Binance and Coinbase as well as the pronouncements of 13 cryptos as securities. The SEC’s actions are already prompting crypto exchanges like Robinhood and eToro US to delist some altcoins, even further lending credence to Saylor’s prediction of a Bitcoin-centric industry.

“I think they have a view of cryptocurrency exchanges which is far constrained. I mean their view is crypto exchanges should trade and hold pure digital commodities like Bitcoin and so the entire industry is kind of destined to be rationalised down to a Bitcoin-focused industry with maybe half a dozen to a dozen other proof-of-work tokens.”

Saylor’s unwavering advocacy

Michael Saylor has stayed true to his advocacy for Bitcoin over the years. His business intelligence company, MicroStrategy has continued accumulating Bitcoin since making its first purchase in August 2020. As of today, it owns 140,000 Bitcoins purchased at an average price of $28,803 and a total cost of $4.17billion. 

He has also taken steps to educate more people and institutions about bitcoin by hosting webinars, conferences, and interviews to share his knowledge and promote its adoption as a reliable digital asset.

Earlier this year, Saylor’s stance on bitcoin was reaffirmed when he advocated for the use of Bitcoin ordinals despite widespread criticism it faced from the broader crypto community. He stressed that discouraging ordinals will limit the ability of the leading digital currency to serve a wider network. He went on to reveal that his software company was exploring the use of Bitcoin ordinals in application development.  

Bitcoin dominance increases as altcoins sink

The current market conditions strongly validate Saylor’s thesis of an imminent industry dominance by Bitcoin. Altcoins have witnessed significant downward spirals in the wake of the SEC’s lawsuits, thereby presenting an opportunity for Bitcoin to solidify its position and gain greater stability.

Data from TradingView shows that Bitcoin’s dominance is around 49%, its highest since 2021. Bitcoin dominance represents the percentage of Bitcoin’s market capitalisation in the total crypto market capitalisation.

Source: Trading View