Bitcoin
Vitalik Buterin Labels Michael Saylor’s Bitcoin Comments ‘Batshit Insane’
The remarks made by a popular executive from a Bitcoin development company, advocating for large financial institutions to take custody of Bitcoin, disappointed the cryptocurrency community.
MicroStrategy CEO Michael Saylor is now at the center of strong criticisms after saying that it would be better for Bitcoin to be in the custody of “too big to fail” banks than self-custody.
The Contentious Remark
Saylor, in a podcast interview, dissuaded investors and traders from the Bitcoin self-custody approach while putting forward the idea of custodianship through large financial institutions like banks.
He believes that large and established financial institutions can better serve Bitcoin holders because they are designed to secure financial assets.
In the said interview, Saylor debunked the possibility of any government seizure of Bitcoin as a “trope”, saying that the risk of seizure increases when the crypto is being controlled by “a bunch of crypto-anarchists” who discard government authority and do not acknowledge taxes and reporting requirements.
Vitalik Buterin didn't like Michael Saylor's Bitcoin comments. Illustration: Darren Joseph; Photos: Shutterstock
He explained that unlike these “crypto-anarchists”, financial institutions follow legal and tax obligations, arguing that it lessens the chances of any government intervention.
Many analysts in the cryptocurrency space were surprised with Saylor’s stance and they find it hard to swallow the concept the executive is pushing.
BTCUSD trading at $66,265 on the 24-hour chart: TradingView.com
A ‘Batshit Insane’ Idea
Ethereum co-founder Vitalik Buterin lambasted Saylor for his controversial perspective on Bitcoin custody, saying that the idea is ‘batshit insane’.
Buterin strongly criticized banks taking custody of the coin, arguing that Saylor’s remarks are already outdated since there had been a lot of technological developments that transformed the “tradeoff space completely.”
I probably did more than most to spread the “mountain man” trope (btw I consider those remarks of mine outdated; snarks and AA changed the tradeoff space completely), and I’ll happily say that I think @saylor‘s comments are batshit insane.
He seems to be explicitly arguing for a…
— vitalik.eth (@VitalikButerin) October 22, 2024
The Ethereum co-founder does not believe that the approach being pushed by Saylor intended to protect crypto will prosper, saying that this is not what cryptocurrency is all about.
“There’s plenty of precedent for how this strategy can fail,” he added.
Bitcoin Community Refutes The Idea
Bitcoin proponents, who are strong advocates of self-custody, do not buy into the idea and reasoning raised by Saylor in adopting Bitcoin custodianship through the banks.
21st Capital co-founder Sina G said that the idea could relegate Bitcoin into an “investment petrock” and warned that it could lead to the stoppage of the crypto being used as a currency.
Sina G called Saylor’s perspective “spooky”, seeing him as the mouthpiece of the government and financial institutions.
If you’re surprised by Saylor’s recent comments then you haven’t been paying attention. https://t.co/Tf7CDM4LqT pic.twitter.com/GTAr2oXjEC
— Jameson Lopp (@lopp) October 21, 2024
Jameson Lopp, Chief Security Officer at the Casa HODL, said that the bank’s custody of BTC has long-term implications for the cryptocurrency space.
Lopp argued that centralizing the digital monies increased the risk of loss and seizure, raising the possibility that Bitcoin users could become disenfranchised due to governance activities such as trading forks and running nodes.
He emphasized that self-custody is significant to further strengthen and enhance the network and is not merely a concern for individual holders.
Featured image from Shutterstock, chart from TradingView
Bitcoin
Metaplanet Secures 10 Billion Yen For Bitcoin Acquisition In Bold Move
Once again making news, Metaplanet Inc., often known as “Asia’s MicroStrategy,” raised 10 billion yen (about $68 million) through a recent stock sale. The goal of this significant investment is to support its aggressive Bitcoin acquisition strategy.
Similar to the tactics of well-known companies like MicroStrategy, the move comes as the company keeps positioning itself as a key player in the cryptocurrency sector.
Metaplanet: Significant Investment In Bitcoin
With more than 13,000 individual shareholders taking part, Metaplanet announced on October 22 that it had successfully finished its 11th round of Stock Acquisition Rights. This money will go toward buying more Bitcoin so the company can expand its already considerable holdings.
*Metaplanet Announces Results of Stock Acquisition Rights Exercise* pic.twitter.com/MquO6JFNEX
— Metaplanet Inc. (@Metaplanet_JP) October 22, 2024
Metaplanet’s share price dropped by roughly 5.85% in spite of the successful funding, which was indicative of some market instability amid shifting Bitcoin values.
“With this financing, we can continue to strengthen our Bitcoin reserves and provide our investors a hedge against Japan’s economic troubles,” CEO Simon Gerovich said in a statement, underscoring the significance of the funding.
Since earlier this year, the company has been actively buying Bitcoin because it sees it as a strategic asset that can help cut the risks brought on by the yen’s decline.
BTCUSD trading at $67,485 on the daily chart: TradingView.com
An Expanding Portfolio Of Bitcoin
Metaplanet has already shown success with its most recent acquisition strategy. Only a few weeks before this investment announcement, the company paid 1 billion yen (about $6.7 million) to acquire an extra 107.91 BTC, increasing its total holdings to about 855 BTC. Due to MicroStrategy’s unique approach to cryptocurrency investing, this aggressive accumulation shows a dedication to using Bitcoin as a treasury reserve asset.
Since launching its Bitcoin strategy, the company’s stock has experienced impressive growth, increasing by around 500% so far this year. Despite sporadic declines in the larger cryptocurrency market, investors have reacted favorably to Metaplanet’s distinct vision and dedication to digital assets.
Impact On The Market And Prospects For The Future
The fundraising comes at a time when Bitcoin faces resistance at approximately $69,000. However, Metaplanet never ditches its mission to increase its inventory.
The company has been testing many strategies for improving its investment push, some through trading Bitcoin options and other through strategic collaborations with market finance giants like SBI Group.
All eyes will be on how these investments perform in an often changing market as Metaplanet gets ready to use its freshly acquired funds for more acquisitions.
Aimed at being among the biggest corporate holders of Bitcoin in Asia, Metaplanet is promoting itself not just as an investor but also as a leader in the integration of cryptocurrencies into conventional finance.
Featured image from Envato Elements, chart from TradingView
Bitcoin
Paul Tudor Jones Says US Inflation Could Drive Bitcoin Investment
Paul Tudor, a billionaire investor and “trading wizard,” says he is considering adding Bitcoin (BTC) to his portfolio. This pivot comes amid concerns about the US government’s debt and deficit problems.
The statement comes as the countdown to the US election continues, with either Donald Trump or Kamala Harris set to become the 47th President of the United States.
Paul Tudor Jones Warns of US Inflation, Eyes Bitcoin as Hedge
The veteran Wall Street investor says the US government’s debt and deficit problems will not go away regardless of who wins the November elections. In his opinion, “all roads lead to inflation,” even after the elections.
These remarks came during a Tuesday interview with CNBC. Tudor said his portfolio could include Bitcoin, commodities, and tech stocks. However, he “rejected” bonds.
In a recent announcement, the Federal Reserve Bank of New York indicated that the average inflation expectation of US consumers in the next 12 months is about 3%. This contravenes the Federal Reserve’s (Fed) preferred inflation target of 2% per year.
According to Tudor, rising US government spending and upcoming tax cuts make the Fed’s inflation target out of reach. Based on this, he cautions that the US is on a path to a deficit unless it works on its spending. He indicated that the national debt has increased to 100% of Gross Domestic Product (GDP), signifying a 60% increase in 25 years.
Read more: How to Protect Yourself From Inflation Using Cryptocurrency.
Against this backdrop, the billionaire investor says the next US president will have to face this problem. Nevertheless, the promises both Donald Trump and Kamala Harris are already making ahead of the elections are bound to worsen the situation. Notably, the commitments revolve around spending increases and tax cuts.
Jones’ remarks align with the US Congressional Budget Office (CBO) estimate that the federal deficit in fiscal year 2024 would hit $1.9 trillion. According to the billionaire investor, this is avoidable through inflation and economic growth. He, therefore, recommends an expansionary policy by the government to keep nominal interest rates below inflation.
Noteworthy, Paul Tudor started shilling Bitcoin four years ago and held around 2% of his assets in BTC in 2020. His longstanding impression of the pioneer crypto is that it is a good portfolio diversifier.
Massive Capital Inflows into Bitcoin ETFs Before US Elections
According to JPMorgan analysts, demand for Bitcoin and, therefore, its momentum could increase. This is in the context of economic instability worsened by geopolitical tension. Bitcoin presents as a hedge, and the same is already happening with gold.
Similarly, massive capital inflows into Bitcoin ETFs (exchange-traded funds) in September and October follow outflows in August. This suggests retail and institutional investors already perceive Bitcoin as a hedge.
As BeInCrypto reported, citing CoinShares researchers, the US elections now pass as the leading tailwinds shifting focus away from the economy. The election narrative continues to drive crypto inflows. With the US elections approaching on November 5, the narrative around crypto as a political topic could gain further momentum.
This growing interest is expected to significantly benefit digital asset investment products as crypto becomes a focal point in an increasingly expansive voter landscape. The political spotlight on crypto, coupled with market factors, positions digital assets for potential growth. It comes amidst heightened investor engagement leading into November.
According to Polymarket data, Donald Trump continues to widen the lead range against Kamala Harris. He boasts a 63.7% winning odds lead against Kamala Harris’ 36.2%.
Disclaimer
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Bitcoin
Has the Preparation For A Massive Rally Begun?
CryptoQuant analyst Burak Kesmeci’s recent report revealed a significant notable rise in Bitcoin accumulation addresses, which now surpasses 2.9 million BTC.
These addresses have steadily increased their holdings without selling despite the market’s uncertainty, doubling their Bitcoin reserves in just 10 months.
This trend highlights a broader market sentiment, where long-term investors, both individual and institutional, are displaying confidence in Bitcoin’s future.
The Rise Of Bitcoin Accumulation In 2024
In the post uploaded on the CryptoQuant QuickTake platform, Kesmeci’s analysis dives deep into understanding what defines these accumulation addresses and why they have been so active throughout 2024.
Unlike typical investor behavior, the analyst mentioned that these addresses have never had a Bitcoin outflow, meaning they’ve only been accumulating. The analyst calls them the epitome of long-term investment strategies, suggesting they are fully committed to the “HODL” mentality. Kesmeci wrote:
They are not exchange addresses; they belong entirely to individual or institutional investors. They’ve made at least two transfers and have been active at least once in the last seven years. Essentially, these addresses are the living embodiment of the word “hodl.”
As of January 2024, these accumulation addresses held 1.5 million BTC. However, in just 10 months, that figure nearly doubled, reaching 2.9 million BTC.
Kesmeci points out that this accumulation behavior isn’t new, but what makes 2024 unique is the speed and volume at which these addresses are growing.
According to the report, this consistent accumulation in such high quantities implies that short-term market volatility does not influence these holders. Kesmeci also highlights that back in 2018, accumulation addresses only held 100,000 BTC.
By the 2021 bull run, that number had grown to 700,000, and in 2024, the acceleration has been noteworthy. This rapid accumulation suggests these addresses are deeply confident in Bitcoin’s long-term value and potential. Kesmeci asks, “What do these address owners know that the rest of the market might not?”
What Does This Mean for The Market?
The analyst concluded with a bold prediction: by the end of 2024, these addresses could hold more than 3 million BTC, potentially valuing over $210 billion at a Bitcoin price of $70,000.
Notably, according to the CryptoQuant analyst, this would place the total value held in these addresses above major corporations like “General Electric the 61st largest company by market cap,” highlighting long-term Bitcoin holders’ growing influence and strength.
Kesmeci emphasizes that this kind of accumulation could significantly impact Bitcoin’s price stability and future growth. If the trend continues, the market may see reduced selling pressure as these large holders remain committed to their positions, possibly driving a sustained price rally in the long term.
Featured image created with DALL-E, Chart from TradingView
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