By Franklin Smith
In the words of Kyle Bass, CIO and founding member of Hayman Capital Management, intensive regulation would be devastating for Bitcoin and since Bitcoin is the lead cryptocurrency, therefore, Bitcoin’s clamping down effect would directly impact the global crypto economy.
Hayman Capital Management’s founder and CIO, Kyle Bass was seen discussing Bitcoin and the impacts of crypto regulations. While rendering his opinion on the two topics, he said that Bitcoin has emerged as a world-class asset, although digital. Bitcoin is the jewel of the crypto crown and therefore would always have significance in the global crypto industry.
However, Bass thinks that there are some elements in the US Government that want to clamp down on Bitcoin. He suggested that he is expecting two major departments of the US to play a vital role with regard to future crypto regulation.
Bass said that Internal Revenue Services and US Treasury are the two departments that are deeply interested in crypto regulations. He believes that both will make sure that the regulations are stiff and tidy so that the implementers can employ intense regulations. It is because of this he is expecting that intense regulations will be introduced in the US in 2022 by the two major departments.
He suggested that currently, investors are fond of cryptocurrencies because they are private. In addition, private cryptocurrencies have time and again proven to them that they are better alternatives to gold. Even in the situation of inflation, cryptocurrencies guard their holders against inflation and devaluation of their national currencies.
He then said that the time is going to change completely now as the world would very soon see their governments turning into authoritarians. They will come after Bitcoin in an effort to clamp it down through strict and intense regulations. However, that would be devastating for Bitcoin as well as to the global crypto economy.
Bass then quoted the ill-treatment caused upon China’s crypto industry by the Government of China itself. He said that initially China targeted Bitcoin miners and deprived them of doing their business. Then the Chinse Government imposed a nationwide ban on cryptocurrencies under the garb of “investors’ protection”.
However, he hadn’t thought that China would bring down its wrath upon the crypto industry very soon. Instead, he was expecting that China would wait for 2022 and then take this drastic measure against the crypto industry.
He argues that the good times are over when people earned piles of money from Bitcoin trading. It would however be difficult from now on for anyone to make any laudable profits. He further suggested that he himself has put a stake in several private cryptocurrencies as well as in blockchain and NFTs.
But he is mentally prepared to forget about cryptocurrencies in the future. Instead, from now on, he would consider putting his stake in NFTs and/or blockchain.