Published:

Jun 21, 2022 12:44 GMT

Michael Saylor says that Bitcoin is caught in the “crossfire” of a collapsing market, as it often serves as collateral in margin loans for less accredited tokens.

The executive director of the ‘software’ developer Microstrategy and one of the largest holders of bitcoin in the world, Michael Saylor, called on governments to regulate a long list of “risky and immature” practices of the crypto industry, which bring “unfair” consequences on the price of the asset, pick up Fortune.

In a conversation With Sven Henrich, founder of the NorthmanTrader market analysis platform, Saylor cited several practices that he describes as a “parade of horrors” among the causes that have caused the fall of bitcoin.

The main reason for Bitcoin’s high volatility, he argues, is the lack of regulation against the trade of washing in the sector of cryptocurrencies, since traders can sell their positions to buy them back at a lower price and without rules about it, adding that this is possible due to the number of trades that do not register.

According to Saylor, the more than 19,000 cryptocurrencies and digital tokens in circulation should be seen as “unregistered values“that cannot be compared to a tangible commodity like bitcoin, which has no issuer, no administration, no employees, no product cycle, and has a finite supply.

Likewise, he assures that bitcoin is caught in the “crossfire” of a cryptographic market that is collapsing, since it often served as collateral in margin loans for less accredited tokens, as is the case with Terra (Luna).

“What you have is a $400 billion cloud of shady, unrecorded securities trading without full and fair disclosure, and they all have cross guarantees with bitcoin. When Luna rose into the sky, they bought bitcoin and when it crashed, they sold bitcoin,” she noted.

Michael Saylor himself is under market pressure, as his company MicroStrategy took out a $250 million loan in March to buy more bitcoin, pledging some of his existing holdings as collateral, and now faces losses of almost $1.2 billionafter bitcoin fell below $18,000 last week.

According to Saylor, government intervention in the cryptocurrency market would be enough to solve Bitcoin’s volatility problems and “protect investors” from the possibility of a further collapse.

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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