Bitcoin and Ethereum investors not backing down, US pressure on crypto will backfire: Chris Burniske
A venture capitalist who correctly called the 2022 crypto bottom says investors in Bitcoin (BTC), Ethereum (ETH) and the broader digital asset market are not batting an eye at the US government’s latest enforcement action against key players in the industry.
In a new CNBC interview, Chris Burniske says the US government’s crackdown on crypto-related activities, including the serving of a Wells Notice to digital asset exchange Coinbase, is not driving investors away from the crypto markets.
According to the Placeholder partner, the regulatory pressure on the industry will ultimately strengthen the conviction of crypto investors and draw more people into Bitcoin.
“You have Bitcoin chugging along, Ethereum chugging along. Basically, these protocols don’t care. Last year, combined, they made up over $20 trillion in value. Bitcoin, you have an all-time high of holders right now, where 68% of holders have not sold or moved Bitcoin in over a year, so you have these people who are not budging, despite all this regulatory pressure.
In fact, I would say, as we have seen since SVB [Silicon Valley Bank] collapses, they shift even more into Bitcoin. So this is where I think you will see the strategy from the government ultimately backfire.”
Burniske also emphasizes that Bitcoin was created for “moments like this”, when trust in the traditional banking system begins to deteriorate.
“[Bitcoin] is an alternative to the existing system. Ethereum also operates an internet-based financial system. These are means for consumers to make a different choice, or at least diversify. There is no solvency risk. It is algorithmic supply. It’s not going to get caught up in the same contagion we’re seeing right now in the traditional system, so it’s valuable for consumers to be educated about it.”
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