A venture capitalist who correctly called the 2022 crypto bottom says investors in Bitcoin (BTC), Ethereum (ETH) and the broader digital asset market are not batting an eye over the US government’s latest enforcement actions against key players in the industry.
In a new CNBC interview, Chris Burniske says the US government’s crackdown on crypto-related activities including the serving of Wells Notice to digital asset exchange Coinbase are not driving investors away from the crypto markets.
According to the Placeholder partner, the regulatory pressure on the industry will ultimately strengthen the conviction of crypto investors and pull in more people into Bitcoin.
“You have Bitcoin chugging along, Ethereum chugging along. Basically, these protocols don’t care. Last year, combined, they settled over $20 trillion in value. Bitcoin, you’ve got an all-time high of holders right now, where 68% of holders have not sold or moved their Bitcoin for over a year. So you have these people who are not flinching, in spite of all these regulatory pressure.
In fact, I would say, as we’ve seen since the SVB [Silicon Valley Bank] collapse, they’re shifting even more into Bitcoin. So this is where I think you’ll see the strategy from the government ultimately backfire.”
Burniske also highlights that Bitcoin was created for “moments like this,” when confidence in the traditional banking system is beginning to sour.
“[Bitcoin] is an alternative to the existing system. Ethereum, as well, operates an internet-native financial system. These are means for consumers to make a different choice, or at the very least, diversify. There’s no solvency risk. There’s algorithmic supply. It’s not going to be caught up in the same contagion we see right now in the traditional system, and so that’s valuable for consumers to be educated about.”
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