Recently, Ryan Selkis, co-founder of data and research firm Messari, published his study on the crypto market in 2021, exploring the state of the industry as well as predicting what lies ahead. Selkis states in this document that the U.S. government is one remaining adversary he thinks BTC must win over.
“The ‘final boss’ to beat is the state,” Selkis wrote in his report, released on Tuesday. “For the U.S., bitcoin presents a tool to undermine international sanctions, and 80% of mining capacity now sits behind enemy lines in China, Russia, and Iran,” he noted. “Will a Biden administration like BTC? TBD.”
In the 12 years since its inception, Bitcoin has trudged through its fair share of governmental hardship. The credibility of Bitcoin is somewhat solidified by its position as a commodity. Concerns over a U.S. government ban have also emerged, but the acting head of the Office of the Comptroller of the Currency, Brian Brooks, recently clarified that Bitcoin is positively perceived by his unit.
Nevertheless in 1933, the government changed its tune on gold, confiscating the precious metal from people in massive numbers. Even if it could be impossible for the U.S. government to functionally confiscate Bitcoin, restricting the asset may also damage its price and related cash on-ramps.
According to Cointelegraph.com Selkis offered a nod to Bitcoin’s resilience on the bullish side of the table. He wrote, “Bitcoin is an unseizable form of private money that’s proven very hard to kill,” he wrote. “It’s outperformed every major asset class over every relevant time period in its history, and it’s got perfect macro tailwinds and momentum,” he said, adding:
“It’s getting ‘safe’ to purchase from a legal and reputational standpoint as a professional money manager, and its supply will inflate less than the Fed’s target rates no matter what happens next year. When you look at BTC vs. gold, and its growth vs. global M1, M2, and central-bank balance sheets, it’s a compelling investment.”In 2020, in the middle of massive U.S. money printing attempts and economic uncertainties, the price of Bitcoin flourished. This year too, a number of big mainstream players, such as Microstrategy and Paul Tudor Jones, have committed huge quantities of money to Bitcoin, padding the credibility of the asset.