MicroStrategy founder and executive chairman, Michael Saylor, has shared his perspective on the potential consolidation of the crypto industry around Bitcoin in light of recent Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase.
During an interview with Bloomberg TV, Saylor expressed his belief that regulators have a limited view of crypto exchanges, favoring the trading and holding of pure digital commodities like Bitcoin. He suggested that the industry may evolve into one that primarily focuses on Bitcoin, with a smaller number of other proof-of-work tokens.
Saylor says Bitcoin dominance is on the rise
Bitcoin’s dominance in the market has been increasing, currently accounting for around 48% of the crypto market compared to 43% in February, according to CoinMarketCap. Saylor even speculated that Bitcoin’s dominance could potentially reach 80% in the future.
This potential consolidation around Bitcoin could pose challenges for exchanges like Coinbase, which has been diversifying its revenue streams due to regulatory pressure and declining investor interest. Coinbase reported a significant decrease in trading fees for the first quarter, prompting the need for alternative revenue sources.
Saylor dismissed concerns regarding the impact of consolidation on exchanges, asserting that they would still play a vital role in the industry. However, some exchanges and crypto companies have already sought opportunities abroad, such as Coinbase launching an international exchange in Bermuda. Other companies have expressed interest in establishing a presence in Hong Kong as China shows signs of warming up to cryptocurrencies.
Saylor also mentioned that institutional investors often find the wide array of cryptocurrencies confusing, and a more Bitcoin-focused market could increase their confidence in the sector. Despite a recent decline in Bitcoin’s value following the announcement of SEC lawsuits, Saylor remains steadfast in his support for Bitcoin as a long-time advocate.