thecoinrepublic.com
According to Palihapitiya, regulatory bodies and legislators should treat the most valuable cryptocurrency asset as a security even if it might not actually be one, according to a recent interview on the All-In Podcast.
Leading digital asset Bitcoin (BTC), according to billionaire venture investor Chamath Palihapitiya, should be governed like security.
Because of the volume and scope of the market, I have a tendency to believe that Bitcoin should be governed like security at this time, even if it isn’t one.
Know why BTC needs to be regulated like security
If a market player is attempting to trade any type of very complex derivatives, such as in the credit markets, we have to go and establish these things called ISDAs.
It’s essentially a type of account that enables us to venture into some of these really obscure markets and take risks, but the core idea behind it is a common set of guidelines, a clearing house, and the capacity to manage risk.
None of those things exist here, thus I believe that’s the problem everyone is now trying to address.
The crypto industry’s unreasonable yield expectations in decentralized finance (DeFi) protocols, according to the millionaire, are another issue.
“All these shady dealings… Simply put, it appeared too fantastic to be accurate. When you learn that this DeFi protocol can provide you a 24 percent return… We didn’t really question it since it never really made sense.
According to Chamath Palihapitiya, who has hundreds of millions of dollars invested in bitcoin, it would be difficult to simply prohibit cryptocurrencies.
He made this statement in an interview with CNBC’s Scott Wapner on Wednesday.
When Ray Dalio said that authorities would try to “kill” bitcoin if it became really popular, and SEC Chair Gary Gensler claimed that the cryptocurrency industry is “rife with fraud,” the billionaire investor was asked what he thought of these statements.
He asserted that while decentralized finance and cryptocurrencies are a part of the next stage of the progression to what is known as Web 3.0, Google and Facebook controlled the first two versions of the internet by organizing, or producing, everything that is currently present on it.