Bitcoin [BTC]’s impressive growth last week has raised investors’ hopes, especially after the exchange-traded fund (ETF) hit $20 billion in inflows.
However, concerns are growing as BTC supply becomes increasingly concentrated in the hands of a few large institutions.
This raises the question of whether this centralized control increases the risk of confiscation, similar to what happened to gold in 1933 under Executive Order 6102.
MicroStrategy Executive Chairman Michael Saylor addressed these concerns in a recent interview on Markets with Madison.
He argues that unregulated private holders are at higher risk of seizure. However, this risk is reduced when BTC is held by regulated institutions such as BlackRock, JP Morgan, and Fidelity.
Additionally, Saylor suggests that lawmakers are less likely to support any moves that might threaten these organizations. He points 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 reduced risk of decline.
Bitcoin and Quantum Computers
When it comes to potential risks, quantum computers are emerging as a threat to current encryption systems, including public-key cryptography.
This begs the question: Can Bitcoin overcome this new challenge?
Of course, Saylor remains optimistic. The CEO acknowledges that as computers become more advanced and powerful, the network will strengthen its defenses.
He stressed the durability of the dominant currency, saying,
“Bitcoin is the strongest, most attack-resistant digital network on Earth. It's the hardest thing to hack.”
With trillions of dollars at stake, Saylor expressed confidence that those motivated to protect their money will ensure the latest technology is integrated into the Bitcoin network to protect it.
BTC: The Superior Asset?
Meanwhile, comparing Bitcoin to traditional assets as well as other cryptocurrencies has been a subject of constant debate.
So what makes BTC stand out in the race for the top spot? According to Saylor, BTC’s unique origins and decentralized nature set it apart.
He referred to Bitcoin's launch by its anonymous creator, Satoshi Nakamoto, as a “Pure Genesis” – free of personal gain or central control, a characteristic that distinguishes 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's a winner.”
This assertion is evidenced by the growing interest from organizations, including MicroStrategy itself.
According to the latest data from Bitcoin Treasuries, MicroStrategy holds 252,220 BTC, worth about $17.42 billion.
This massive investment reflects Saylor's continued confidence in Bitcoin's potential as a superior digital asset.
Source: Bitcoin Treasuries
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