Remember when Bitcoin was considered a joke? When did many predict his death? Something worthless, they said. Now the president of the SEC, Jay Clayton, assures that Bitcoin is not a security, it is “a payment mechanism and a store of value.”
Bitcoin has had a long journey, many have criticized it from the beginning and others have managed to recognize its potential. However, without a doubt, this year the behavior of the leading crypto has opened the eyes of many investors.
Now Bitcoin is considered an attractive asset to shelter against inflation, even more than gold itself. Consequently, it could be said that 2020 has been the result of years of struggle by the crypto community.
All the trust investors have placed in Bitcoin has gotten it to where it is today.
Today Jay Clayton, president of the SEC, during an interview with CNBC assured that Bitcoin is not a security. According to Clayton, Bitcoin is “more like a payment mechanism and a store of value.”
“We determined that bitcoin was not a security, it was much more a payment mechanism and stored value,” says SEC Chairman Jay Clayton on #btc. “Our current payment mechanisms – have inefficiencies those inefficiencies are the things that are driving the rise of bitcoin.” pic.twitter.com/3r1mxzfgpi
– Squawk Box (@SquawkCNBC) November 19, 2020
Likewise, Clayton explained that “the inefficiency of our current payment mechanisms” drove the adoption of Bitcoin. I don’t completely agree, the truth is that, from my perspective, inefficient economic policies have boosted Bitcoin.
However, there is another detail that Clayton comments. According to the SEC chairman, as the leading crypto becomes more popular, we could see stricter regulations.
“I think we’ll see this mature and I think we’ll see more regulation in the payments space,” Clayton said. Basically with this Clayton made it clear that the SEC does not have the responsibility to regulate Bitcoin as a payment mechanism, the government does.
Would regulation be bad news for Bitcoin? Not necessarily. If crypto regulations are appropriate, we could even see a boost.
Crypto Factors Driving Bitcoin
In relation to the previous news, where Clayton attributes the growth of Bitcoin to the inefficiency of the payment mechanisms, Sam Trabucco, a trader from Alameda Research, arrives and offers us four general factors that are driving the price of Bitcoin up.
Yesterday Trabucco posted an extensive Twitter thread where he highlighted four key factors driving the crypto leader: Whale buildup, increased adoption, institutional purchases, and influence from other markets.
The crypto advantages of ETH 2.0 will arrive sooner than expected
As we reported in CryptoTrend, in an Ask me anything session, Vitalik Buterin indicated that the crypto community could see the advantages of ETH 2.0 sooner than expected.
The interesting thing is that the question and answer session was organized by the Ethereum Foundation. Was it an attempt to draw attention to the crypto update?
OKEx will finally allow crypto Bitcoin withdrawals
Crypto exchange OKEx announced that it will renew crypto withdrawals from November 27, after suspending them on October 16.
It’s worth remembering that crypto founder Xu Mingxing was taken away by the police last month in cooperation with the investigation. Since then, the crypto exchange has paused withdrawals and provided a lot of talking in the community.
In a few lines …
Changpeng Zhao, CEO of Binance, assured today that selling Bitcoin holdings now could be a big mistake. This as some investors have decided to take their gains. Bitcoin’s crypto futures market yesterday hit a six-month high of more than $ 50 billion in volume. According to ., Japan’s three largest banks will collaborate on a experiment with the digital yen.
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