MicroStrategy CEO Michael Saylor recently described the ten things he believes are holding Bitcoin back from becoming a mainstream asset. Should these so-called “pain points” be met, they will each be “very bullish” for the Bitcoin industry.
- In an interview with Bloomberg on Friday, Saylor named wash trading as his first gripe. Since Bitcoin has no rules against this yet, traders can harvest tax gains through buying and selling their own Bitcoin. That is a no-no in traditional equities markets.
- Bitcoin trading is currently plagued by 520 unregistered and unregulated trading platforms offering 20X leverage or more. This contributes to enhanced volatility in the space, scaring long-term investors away and while destroying others. As these exchanges get regulated, it will be a boon for Bitcoin.
- There are over 19,000 other cryptocurrencies that Saylor deems “unregistered securities,” being cross-collateralized with Bitcoin. As these are converted into publicly-traded instruments, Saylor thinks this will decrease Bitcoin’s volatility.
- A series of “wildcat banks” are offering unsustainable yields in the crypto space, and create volatility when they collapse. Both Terra and Celsius network are recent examples of this. Such institutions must be regulated like traditional banks, as the Securities and Exchange Commission (SEC) has advocated for.
- There is still major fear and ignorance surrounding Bitcoin. This comes from a combination of lacking technical knowledge and media narratives spelling Bitcoin’s demise. Such narratives frequently surround price collapses, scams, or alleged environmental harm.
- A fully regulated and approved stablecoin is yet to hit the market. Having such a product that’s FDIC issued or endorsed by the SEC will be bullish for the industry. Right now, Tether (USDT) is the world’s largest stablecoin, but is plagued by opaqueness regarding its reserves.
- A Bitcoin spot ETF is yet to launch in the United States. Only futures ETFs have been approved thus far, despite spot products launching in multiple other developed countries. Saylor thinks the SEC will certainly approve one with time, which will invite more capital to the space.
- Saylor’s final three hurdles are FASB’s current accounting standards, lack of FDIC guidance, and lack of SEC and CFTC clarity.