All eyes are on Bitcoin (Bitcoin),biggest Cryptocurrency surged above $40,000 on MondayUnsurprisingly, the price increase occurred shortly after Tesla CEO Elon Musk tweeted about the electric car company May accept BTC payments The miners reconfirmed the green energy initiative.
However, although Musk’s tweets may have pushed up the price of Bitcoin, some industry experts believe that Bitcoin is not a cryptocurrency that should be used. For example, in an exclusive interview with Cointelegraph on Bitcoin 2021 in Miami, Caitlin LongThe founder and CEO of Avanti Financial stated that unlike other cryptocurrencies, solvency is more important than leverage and liquidity in terms of Bitcoin:
“Once you enter Bitcoin and start to lose money, I think this is a very valuable tuition to really understand what Bitcoin is. We now have many newcomers in this industry who are taking these courses, and I hope people can learn from them. Especially in this bull market. , The system adds so much leverage. For those of us who have been around for a long time, we have learned these lessons a long time ago-you did not use Bitcoin.”
Regulatory push for Bitcoin and stablecoins
In addition to suggesting that Bitcoin should not be used, Long also mentioned that Washington, DC, has introduced new regulations for Bitcoin-which she believes has been coordinated with other government agencies. “It is Ray Dalio who said that Bitcoin’s biggest threat is success-because it means that regulators will crack down,” Long said.
Although this may be, Long pointed out that the regulations will not prohibit Bitcoin or other cryptocurrencies as long as users comply. she says:
“The point is, if you pay taxes and are regulated, and don’t take shortcuts, you’ll be fine. Those who try to commit crimes, or deceive consumers, or who don’t pay taxes and don’t follow the law, will not be fine. .”
Long also pointed out that regulation around stablecoins is the top priority for legislators. In particular, this will ensure that stablecoins will not infect the U.S. dollar payment system with liquidity risks.To put this in perspective, Long mentioned accidental A few hours of hard fork happened on Ethereum During November 2020, say:
“At the time, I was thinking,’If all Ethereum ERC-20 stablecoins have to be redeemed within a few minutes because they have to be burned on one fork and reissued on another fork, what will happen?” This is not traditional The financial system has been considering the risks. “
In addition, Long commented on the risks associated with stablecoins in May, warning that the entire stablecoin market has Reduce the potential of other tokens After the credit market has adjusted.