SEC Chair: Bitcoin is Rallying Because of Inefficiencies In Traditional Systems
Jay Clayton, the chair of the United States Securities and Exchange Commission (SEC), in an interview with CNBC’s Squawk Box, confessed that traditional legacy payment mechanisms are inefficient. Their inefficiencies are pumping Bitcoin prices, a digital asset classified as a utility, and a store of value by the strict agency.
How regulators view cryptocurrencies can be supportive or destructive. Bitcoin has the “hall pass” as Brad Garlinghouse the CEO of Ripple, once said. The digital asset has been rallying in recent days. At the back of varying fundamentals pinned on several factors like the political fix in the United States, the Bitcoin miner cash crunch in China, and inflation fears around the globe, Bitcoin is benefiting from capital injection from retailers and institutions. Investors consider the digital asset as a reliable store of value. They are now confident enough to shift their valuables, protecting themselves from inflation and even government seizure in extreme cases.
The Impact on the BTC Price:
Bullish. Jay’s admission that there is a problem with traditional payment systems is a confirmation that Bitcoin is superior and perfect as a ship in the current financial storm. The coin’s inherent properties make it a superior vehicle for investors seeking value.
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