Jay Clayton, chairman of the SEC, recently stated that Bitcoin is a store of value and a payment mechanism.
Many people considered Bitcoin to be a kind of joke and others even predicted its imminent death. They argued that the cryptocurrency was something of no real value. On this occasion, the chairman of the SEC, Jay Clayton, assures that Bitcoin is not a security but “a payment mechanism and a store of value.”
Bitcoin’s Achievements
Bitcoin has received a lot of criticism since the beginning, but some people have managed to recognize its potential. However, this year the behavior of the first cryptocurrency has opened the eyes of many investors.
Bitcoin has become an attractive asset to shelter against inflation, even above gold itself. Therefore, it is possible to say that 2020 has been the product of the crypto community’s years of struggle. Investor confidence in Bitcoin has led it to the position that it occupies today.
The SEC chairman Jay Clayton stated, during an interview with CNBC, that Bitcoin is not a security. Clayton sees Bitcoin as “more like a payment mechanism and a store of value.”
Similarly, Clayton explained that “the inefficiency of our current payment mechanisms” drove the adoption of Bitcoin. However, the application of some inefficient economic policies could have also contributed to boosting Bitcoin.
There is another detail that Clayton comments. The SEC chairman says that there could be stricter regulations as the major cryptocurrency grows in popularity.
“I think that we will see this maturation, and I think that there will be more regulation in the payments area,” Clayton said. With this, Clayton clarified that the SEC is not responsible for regulating Bitcoin as a payment mechanism, but the government.
The news on the regulation would not necessarily be bad. If crypto regulations are appropriate, there could even be a boost.
Factors Driving Bitcoin
Concerning the previous news, Clayton attributes the growth of Bitcoin to the inefficiency of payment mechanisms. Sam Trabucco, a trader at Alameda Research, mentions four general factors that are boosting the price of Bitcoin.
In his Twitter account, Trabucco highlighted four key factors that are driving the main cryptocurrency in the market: the accumulation by whales, the increase in adoption, institutional purchases, and the influence of other markets.
ETH 2.0 Advantages Will Come Sooner Than Expected
In an Ask me Anything session, Vitalik Buterin indicated that the crypto community could see the benefits of ETH 2.0 sooner than expected.
The Ethereum Foundation itself was in charge of organizing the question and answer session. The intention may have been to draw attention to crypto updates.
OKEx Will Allow Cryptocurrency Withdrawals
Crypto exchange OKEx announced the resumptions of cryptocurrency withdrawals at the end of November. They had suspended that service on October 16th.
Last October, the police asked Xu Mingxing, a crypto founder, to collaborate with them in the investigation. Since then, the crypto exchange had not offered the withdrawal service, which caused a lot of talk in the community.
By Willmen Blanco
