BlackRock's Jay Jacobs believes that regulatory support from the Trump administration will have a positive effect on BTC

Wait, what about decentralization? Why can anyone influence the value of cryptocurrency? That's not what it was created for.

Those who just came to crypto and heard that cryptocurrency is not managed, it is decentralized — you are not mistaken. Just look at it from the other side.

Here, look.

Yes, Bitcoin is technically decentralized. No one can "turn off" the network or directly manage it alone. To do this, you need to have 51% of the network's power, which is currently unrealistic to do. But that's not what we're talking about now.

In the Bitcoin market, it's not the code and blockchains that decide everything, but the money and mood of investors. And here the main players are institutional investors who rely on the very regulatory framework that retail investors are allegedly running from. That is, those who buy Bitcoin for a couple of hundred dollars, and not for a million. This is the first contradiction of the crypto market.

The second contradiction: when, for example, BlackRock, Fidelity or someone else enters the market, they do it not out of love for the ideas of Satoshi Nakamoto, but for profit. And for this they need rules of the game to protect their billions. Regulation is beneficial to them.

And the third contradiction: the price of bitcoin no longer depends on techies who mined coins in the garage. It does not depend because the complexity of mining has increased and it is almost impossible for an ordinary person to mine a large sum on his own. Now crypto is driven by investment funds, large exchanges and media noise around ETF funds. And they understand perfectly well: stability and growth require coordination with regulators.

I have said many times and I will repeat again: the benefits of decentralization will come when countries do not start buying bitcoin, but when countries start using the blockchain for its intended purpose — that is, storing data there — for example, land data. 

#btc #defi #cefi #bitcoin