US Government Can’t Hurt Bitcoin with Ban
During an interview with Paul Barron, Mark Yusko, the Chief Investment Officer of Morgan Creek Capital, discussed the potential impact of a US government ban on Bitcoin (BTC) and why he believes it would not prevent the growth of the cryptocurrency.
Yusko argued that a ban on BTC would not be as effective as some people suggest because US holders of the asset only represent 20% of the total number of global holders. As a result, even if the US government prohibited it’s citizens from owning or trading Bitcoin, it would still continue to function and thrive in other parts of the world.
Yusko also pointed out that the flagship cryptocurrency’s popularity is not limited to the US. Many people in countries like Nigeria are increasingly turning to digital assets like Bitcoin due to the depreciation of their local currencies against assets like gold and BTC. He stated:
“[Bitcoin’s] the most popular currency in Nigeria today because the Nigerian naira is going into the toilet like the Turkish lira and the Argentinian peso and the Venezuelan bolivar. So all of those assets are deteriorating in value relative to things like gold and Bitcoin.”
When asked about the future of virtual assets, Yusko predicted that his six-month-old granddaughter would grow up in a world where paper money and leather wallets would be obsolete and digital wallets and currencies would be the norm. He believes that the adoption of virtual assets like Bitcoin is as inevitable as every other major technological transformation in history and that it will ultimately see mass adoption by the general public. Yusko is confident that BTC will continue to grow in the future.
He emphasized that the early stages of technological transformation can often be dismissed as a fad, but this creates excellent opportunities for investors who can recognize the long-term growth potential. He also cautioned against the potential dangers of central bank digital currencies (CBDCs), which could threaten the decentralization of cryptocurrencies like Bitcoin.
In conclusion, Yusko believes that a US government ban on Bitcoin would not be enough to stop the growth and adoption of the cryptocurrency, as it is already gaining popularity in many parts of the world. He predicts that virtual assets will continue to see mass adoption and that investors who recognize the potential for growth in the long term will be able to take advantage of this trend.