This morning Bitcoin is down about $2000. According to Lloyd Blankfein, who is the former CEO of Goldman Sach, he said there is a lot to be skeptical when it comes to Bitcoin. He was on CNBC yesterday and talked about how a currency is supposed to be a medium of exchange, store of value, etc. and said Bitcoin doesn’t have any of those attributes.
When it comes to a store of value, Lloyd’s position is if you lose or forget your keys, you lost your Bitcoin forever. Thus, how can that be a store of value. In terms of a medium of exchange, Lloyd said the regulation bodies have a hard time with that because of the anonymity, creating an environment for money laundering and illegal activity.
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.”
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.
If we want Bitcoin to moon, we need the Smart Money's money bag. They will not fully invest without additional regulation. So we will have to take the good with the bad as it's still an opportunity to invest in Bitcoin before they do, but time is running out.