The serial entrepreneur thinks the regulations by enforcement from the US SEC have significantly dragged the Bitcoin market from rallying further.
The Bitcoin (BTC) market has undeniably shaken the traditional financial industry around the world with investment fund managers proliferating into the crypto sector amid the bear market. Valued at about half a trillion, the Bitcoin market is expected to overtake that of Gold in the coming decades. According to BlackRock Inc (NYSE: BLK) CEO Larry Fink, Bitcoin is digitizing gold and its mainstream adoption is imminent in the coming years.
Moreover, more nations are aligning their regulatory policies to adopt the nascent industry safely. For instance, the United Kingdom recently announced the adoption of clear crypto and blockchain policies almost similar to the MiCA framework from the European Union.
Draper on Bitcoin Market
According to the words of serial entrepreneur Tim Draper who shared his opinion in a recent Bloomberg interview, Bitcoin is here to stay despite the negative impact of the bear market. Notably, Draper had predicted that Bitcoin price will trade at around $250k by now following mainstream adoption. As BTC was trading at about $30k on Wednesday, Draper insisted that the ongoing regulations by enforcement from the United States Securities and Exchange Commission (SEC) have significantly driven away investors.
Moreover, no investors want to be involved in the SEC’s lawsuit which ends up consuming a lot of legal resources and the latter is backed by taxpayers’ money. Nonetheless, Draper highlighted that Bitcoin price will hit $250k in two years triggered by next year’s halving event.
Meanwhile, Draper insisted that retailers can adopt Bitcoin as a form of payment currency since it is fast through the lightning network and also saves on bookkeeping inventory.
So much for my predictive abilities…It is June 30, 2023. When Bitcoin was $4000, I predicted it would reach $250k (60X) by now. It has only reached $30k (7X). I guess we have to wait a little longer, (maybe 2 years) but engineers are hard at work. #bitcoin #trust #freedom
— Tim Draper (@TimDraper) June 30, 2023
Notably, Draper called on the United States regulators to act now and avoid playing catch up with the rest of the world later. Furthermore, retail traders and consumers have shown great interest in using Bitcoin as a form of payment in place of fiat currency.
“I wasn’t really expecting the US bureaucracy to be this aggressive, and I thought that maybe they would be recognizing that they’ve got to compete with the rest of the world,” Draper noted. “They’ve got to provide a platform from which entrepreneurs can flourish, and by having this regulation by enforcement that the SEC has been professing and driving, it’s really driving all the great entrepreneurs out, and I think that that has hurt the bitcoin price.”
The sheer fragmented nature of the American economy into different states and regulators with conflicting interests has slowed down the adoption of Bitcoin and the crypto market. Nonetheless, the demand for Bitcoin and its investment products like the ETF continues to rise and attract more investors. As a result, the Bitcoin and crypto markets are expected to play a crucial role in next year’s presidential election in the United States.