At this point, Michael Saylor, the CEO of Microstrategy, has become one of the most important and influential figures in the crypto space.
Although Saylor has only been heavily involved in the last six months to one year, his dedication and insights into Bitcoin are highly coveted by the industry.
Saylor recently appeared on SALT Talks, a crypto talk show hosted by the SALT lending platform, with some interesting insights into his thoughts on the future of Bitcoin and institutional investors.
Additional Regulation Can Increase Investor Confidence
In terms of the financial industry, Bitcoin and all cryptocurrencies as a whole are viewed as a high-risk, wild west, anything goes asset class.
We’ve seen innumerable stories of users who have lost hundreds of millions of dollars worth of Bitcoin and cryptocurrencies, with virtually no recourse to regain control over their assets. This is where Saylor thinks regulation can come in handy, as it can construct a methodology that allows for Bitcoin to be stored and transacted in a safer way.
A good example of this can be found in GBTC, the Grayscale Bitcoin Trust that allows investors exposure to Bitcoin while staying fully regulated. Grayscale is an SEC-compliant firm that provides security and insurance for its customers. This has led to its AUM growing from $2 billion to well over $20 billion in the past 12 months.
A platform that is fully regulated allows for institutions and high-net-worth individuals to get involved while mitigating their overall exposure risk.
As Saylor states in the interview, “To the extent that we have regulated entities that are dealing in Bitcoin, I think it’s just going to accelerate the stampede of institutional money into Bitcoin.”
Microstrategy Bets Big on Bitcoin
It shouldn’t come to anyone’s surprise that Saylor speaks so highly of Bitcoin. He and his company have major exposure to the asset. Microstrategy has purchased over $1 billion in BTC using its cash reserves and even bought a further $10 million worth near the $30,0000 price range.
Although Saylor has a lot to gain from Bitcoin’s adoption, his points on regulation may be true — even if they aren’t what the anti-centralization-focused portion of the community may want.
For now, cryptocurrencies will remain relatively unregulated with custodial options up to the end-users. However, increased regulatory involvement in the sector could provide a veil of legitimacy to the asset class and create a larger push from institutional investors.