Bitcoin’s (BTC) dominance is set to reach 80% in the long term as regulators crack down on other assets, MictraStrategy co-founder Michael Saylor told Bloomberg TV on June 13. MicroStrategy is the largest public holder of BTC.
Currently, Bitcoin’s crypto market dominance is around 48%, meaning BTC accounts for nearly half of the over $1 trillion market, per CryptoSlate data.
“MicroStrategy’s view since 2020 has been that the only institutional-grade investable asset in the crypto space is Bitcoin. Bitcoin is the universally, globally-acknowledged digital commodity in this industry.”
Saylor believes regulators do not see a “legitimate path forward” for stablecoins, crypto securities, and crypto derivatives. This month, the U.S. Securities and Exchange Commission (SEC) designated 19 crypto assets as securities in its lawsuits against Binance and Coinbase.
U.S. regulators have a view of crypto exchanges that is “far constrained,” Saylor said. As per the regulators, exchanges should only trade and hold “pure digital commodities” like Bitcoin, he said, adding:
“So, the entire industry is kind of destined to be rationalized down to a Bitcoin-focussed industry with half a dozen to a dozen other proof-of-work tokens.”
There are over 25,000 tokens tracked across CryptoSlate, CoinMarketCap, and CoinGecko, and Saylor said that the abundance of cryptocurrency tokens had created confusion in the industry. Most of these tokens have been trying to position themselves as the “next Bitcoin or better Bitcoin,” Saylor said.
But as regulators crack down on tokens, investors will realize that only “Bitcoin is the next Bitcoin,” Saylor remarked. Therefore, he predicted that the Bitcoin price is set to increase. He stated:
“The next logical step is for Bitcoin to 10x from here, and then 10x again.”
Saylor also communicated that he sees a few bullish signs for Bitcoin on the horizon. The change in accounting standards, the upcoming Bitcoin halving, the explosion of hash rate, and the “clarity” that has come from the SEC’s recent moves are “laying the foundation for the next bull run.”
U.S. crypto exchanges will be ‘fine’ focusing on just Bitcoin
Saylor said that “mega institutional money” is not currently flowing into the crypto space due to “confusion and anxiety.” He believes that when this confusion and anxiety goes away with regulatory clarity, institutional money will flood the space.
Eventually, U.S. crypto exchanges will realize that Bitcoin is the “really dominant asset.” With Bitcoin’s price increasing ten-fold, the business model of the exchanges “will be just fine” while focusing only on Bitcoin, he added.
Similarly, crypto exchanges have a “massive need” to help people and institutions buy, sell, and hold Bitcoin. This need is not “going away,” Saylor said. In fact, he thinks it will be a “great business” for the exchanges.