Cryptheory: Crypto and Internet

cryptocurrency and internet meaning, guides, learning

Michael Saylor cited crypto hedge funds such as Three Arrows Capital (3AC) as obstacles of cryptocurrency adoption

3 min read

 

Michael Saylor, CEO of MicroStrategy and one of the biggest BTC investors in the world, called on regulators to exercise their power over altcoins. That is, the executive asked the government to regulate all cryptocurrencies.

According to Saylor, the nearly 20 alternative cryptocurrencies to BTC should be classified as “unregistered securities”. This definition would have the impact of expanding restrictions for users and companies to trade and even create other cryptocurrencies.

CEO of MicroStrategy called the proliferation of altcoins a “parade of horribles”, and argued that they harm BTC itself.

According Saylor Bitcoin Faces Crossfire

Saylor’s remarks were made during a podcast with Sven Henrich, founder of NorthmanTrader. Henrich touched on the topic of the recent market crash, which severely affected the price of BTC. With this, the cryptocurrency has accumulated losses of almost 30% in the last few days.

In his response, Saylor said that BTC was caught in the crossfire of a collapsing cryptocurrency market. He stated that the problem lies in the fact that several protocols have given BTC as collateral to buy less-proven tokens.

However, token prices have dropped sharply, forcing investors to liquidate their investments. When this happened, many had to sell BTC, increasing selling pressure.

“What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure. And they are all cross-guaranteed with BTC,” Saylor argued.

Next, Saylor said that is why the institutional market no longer invests in BTC. After all, the alleged “unregistered securities” present themselves as a risk associated with cryptocurrencies. In other words, the bad reputation of altcoins would affect the performance of BTC.

An example of this view is the speech of well-known investor Nouriel Roubini, one of the few to have predicted the 2008 crisis. Over the weekend, Roubini described the fall in this market as a “Ponzi scheme collapsing under its own weight”.

So it’s attitudes like these that make Saylor believe that regulators should and eventually intervene. Interestingly, the executive was a big critic of government intervention in the free market during the pandemic, as well as advocating freedom when it comes to BTC.

The parade of the horrible

In his speech, Saylor used examples from the traditional market to justify his position. In this regard, he said that even strong multinationals like Apple would see more volatility in their share prices if there were no regulations.

Market rules allow, for example, the occurrence of practices such as wash trading. This practice occurs when an investor negotiates the purchase and sale of assets in portfolios owned by him.

That way, if the investor has a lot of money, the asset registers a spike in volume. But this volume is artificial, moved only by this operation. Wash trading raises market prices without real demand for the asset.

He cited cryptocurrency hedge funds such as Three Arrows Capital (3AC) as obstacles rather than facilitators to cryptocurrency adoption.

“The general public shouldn’t buy unregistered securities from wild bankers that may or may not be there next Thursday,” said Saylor, whose company owns 129,218 BTC at the end of March.

3AC is at risk of bankruptcy, in part due to a failed bet on the value of Terra (LUNA), the governance token that backed the TerraUSD (UST) stablecoin. When the stablecoin collapsed, the value of LUNA turned to dust.

Ledger Nano X Review and Where to Buy Nano X (2022)

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

14 thoughts on “Michael Saylor cited crypto hedge funds such as Three Arrows Capital (3AC) as obstacles of cryptocurrency adoption

  1. Wonderful blog! I found it while searching on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Many thanks

  2. I’ll right away grasp your rss feed as I can not in finding your email subscription link or e-newsletter service. Do you have any? Kindly allow me recognize in order that I may subscribe. Thanks.

  3. My spouse and I absolutely love your blog and find nearly all of your post’s to be precisely what I’m looking for. Do you offer guest writers to write content available for you? I wouldn’t mind writing a post or elaborating on some of the subjects you write concerning here. Again, awesome weblog!

  4. Hello are using WordPress for your site platform? I’m new to the blog world but I’m trying to get started and set up my own. Do you require any html coding expertise to make your own blog? Any help would be greatly appreciated!

  5. Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I’d prefer to use some with the content on my blog whether you don’t mind. Natually I’ll give you a link on your web blog. Thanks for sharing.

  6. F*ckin’ awesome issues here. I’m very glad to look your article. Thanks so much and i am looking forward to contact you. Will you kindly drop me a mail?

  7. Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantastic blog!

  8. An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers

  9. F*ckin’ tremendous things here. I am very satisfied to peer your article. Thank you so much and i’m having a look forward to touch you. Will you please drop me a mail?

Leave a Reply

Your email address will not be published. Required fields are marked *