In the CNBC’s Jim Cramer show, US Securities and Exchange Commission (SEC) chairman Gary Gensler revealed that Bitcoin is more of a commodity than security. This ends a decade-long debate regarding Crypto classification and subsequent regulation.
While unpacking the CNBC interview, Nigel Green-the CEO of deVere- a leading financial adviser, confirmed the assumption. Green believes that the idea of Bitcoin as a digital gold will be rekindled when the regulator officially releases the Crypto adoption guideline. However, it is unclear whether the lawmakers will revise the bipartisan Crypto bill by Sen. Kirsten Gillibrand (D.-N.Y.) and Sen. Cynthia Lummis (R.-Wyo.) to align with the new assumption.
How Bitcoin Compares to Gold
According to Green, Bitcoin shares some key attributes with Gold and other commodities. Firstly, it is a medium of exchange. Secondly, it is a unit of account. Thirdly it is a non-sovereign decentralized token. Lastly, it is a store of value.
Green believes that Bitcoin will dethrone Gold as the most viable commodity because of these attributes. It will be an ideal haven for investments because its decentralized nature shields it from global shocks that affect financial and crypto markets.
Factors Driving Bitcoin Adoption
In the EU and the US, Crypto adoption is growing at a meteoric pace. This is why regulators are increasingly opting to regulate the digital space to shield. From Green’s perspective, the biggest driver for BTC adoption is unwavering support for digital assets among native investors, millennials, and younger investors. These market segments believe in tech-driven solutions for sustainability, and digital assets are the center of the web-3 transition, which is on steroids.
On the other hand, the crippling inflation and the quantitative easing prevalent in most countries are reducing the worth of fiat money. Hence, individuals are opting for new means of payment, and Crypto offers the best alternative.
The Market Will React Positively to The News
Gary Gensler’s comments on Bitcoin will likely increase the confidence level in Bitcoin and other Altcoins. The SEC chair’s assertion affirms the importance of the largest Crypto as the premier global, digital, borderless, tamper-proof money that will support the future economy.
Hence, despite the ongoing Crypto winter, the volume of transactions in the market will continue to be high as investors rush to buy the dip. Meanwhile, BTC has shed off 3.5% of its price in the last 24 hours and is fast approaching the $20,000 level of support. The slide in prices is attributed to the increase in the circulating supply of Crypto, which is up by 6.8% in the last 24 hours to peak at 1,133,118 BTC.