The CEO of MicroStrategy views the nearly 19,000 cryptocurrencies and digital tokens in circulation as not comparable to Bitcoin. He said that the general public should not buy unregistered securities from owners that may be gone in the next few days.
Michael Saylor, one of the biggest Bitcoin hoarders, recently asked governments to regulate the dangerous and immature practices of the crypto industry. He believes those improper practices represent a parade of horrors bringing unfair consequences on the price of Bitcoin.
The CEO of business intelligence firm MicroStrategy has talked about the nearly 19,000 cryptocurrencies and digital tokens in circulation. He considers it necessary to view them as unregistered securities not comparable to a tangible product like Bitcoin.
Along with NorthmanTrader founder Sven Henrich, Saylor said Bitcoin was in a crossfire amid a falling crypto market. He explained that this happens because Bitcoin often works as collateral in margin loans for less developed tokens.
Saylor noted that there are USD 400 billion worth of opaque, unrecorded securities without full disclosure, cross-collateralized with Bitcoin. He added that institutions do not touch Bitcoin due to the sludge from all unregistered securities.
Well-known economist Nouriel Roubini was among those that predicted the global financial crisis of 2008. He referred to cryptocurrencies as a Ponzi scheme collapsing under its own weight.
According to Saylor, the intervention of governments in cryptocurrencies could protect investors from a possible further collapse of Bitcoin. It is relevant to know that MicroStrategy has invested more than USD 3.97 billion over the past two years, accumulating 129,218 BTC.
There Is a Parade of Horrors in the Crypto Market
Saylor commented that they would all fall within ten years if he listed the parade of horrors in the crypto market. He considers that strong companies like Apple would see greater volatility in their share price without regulations preventing wash trading.
Besides, the CEO of MicroStrategy pointed to cryptocurrency hedge fund Three Arrows Capital (3AC) as an obstacle to the adoption of digital assets. He said that the general public should not buy unregistered securities from wild owners that may be gone in the next few days.
The crypto fund 3AC might collapse due to its unsuccessful bet on the value of Terra (LUNA). That governance token backed the recently collapsed stablecoin TerraUSD.
During a liquidity crisis, crypto lending company Celsius Network recently suspended all withdrawals and transfers. That kind of financial cryptocurrency corralito led to the collapse of BTC to lows not seen since December 2020.
The Bitcoin holdings of MicroStrategy are now worth about USD 2.647 million, representing losses of over USD 1.2 billion. In 2020, Saylor turned his firm into a bet on the future price of Bitcoin. However, the value of the cryptocurrency has recently dropped below USD 18,000.
Bitcoin is trading at around USD 20,285 and has accumulated a 1% loss over the last 24 hours. While its daily trading volume is above USD 25.59 billion, its market capitalization is about USD 386.76 billion, according to CoinGecko.
By Alexander Salazar
