The impressive growth of Bitcoin [BTC] last week has rekindled the hopes of investors, especially after the exchange-traded fund (ETF) reached the milestone of $20 billion in inflows.
However, concerns are growing as the supply of BTC is increasingly concentrated in the hands of a few large institutions.
This raises the question of whether this centralized control could increase the risk of confiscation, similar to what happened with gold in 1933 under Executive Order 6102.
MicroStrategy's CEO, Michael Saylor, addressed these concerns in a recent interview on Markets with Madison.
He argued that privately-held owners are at higher risk of confiscation. However, this risk is reduced when BTC is held by regulated institutions like BlackRock, JP Morgan, and Fidelity.
Furthermore, Saylor suggested that lawmakers are unlikely to support any actions that could threaten these institutions. He pointed out,
"That's where all their retirement money is invested."
He also highlighted the benefits of Bitcoin being held by regulated institutions, including reduced volatility and decreased risk of a dump.
Bitcoin and Quantum Computers
When discussing potential risks, quantum computers are emerging as a threat to current encryption systems, including public-key cryptography.
This raises the question: Can Bitcoin withstand this new challenge?
Unsurprisingly, Saylor remains optimistic. The CEO acknowledged that as computers become more advanced and powerful, the network will fortify its defenses.
He emphasized the resilience of the leading cryptocurrency, stating,
"Bitcoin is the strongest network, the most attack-resistant network on Earth. It's the hardest thing to hack."
With trillions of dollars at stake, Saylor expressed confidence that those with the incentive to protect their money will ensure that the latest technology is integrated into the Bitcoin network to safeguard it.
BTC: A Superior Asset?
Meanwhile, the comparison of Bitcoin to traditional assets as well as other cryptocurrencies has become a subject of ongoing debate.
So, what sets BTC apart in the race for dominance? According to Saylor, the unique origin and decentralized nature of BTC make it distinct.
He referenced the launch of Bitcoin by the anonymous creator, Satoshi Nakamoto, as a "pure genesis" - without personal gain or centralized control, a feature that differentiates it from other cryptocurrencies.
Saylor argues that the appeal of Bitcoin lies in the fact that,
"All the smart investors in the world have decided that it's the winner."
This claim is evidenced by the increasing interest from institutions, including MicroStrategy itself.
According to the latest data from Bitcoin Treasuries, MicroStrategy holds 252,220 BTC, worth approximately $17.42 billion.
This massive investment reflects Saylor's continued confidence in the potential of Bitcoin as a superior digital asset.
