Mow’s Take on BlackRock’s Impact:
In a recent interview, Samson Mow discussed the potential impact of financial giants like BlackRock getting involved in Bitcoin. He sees this as a positive sign that Bitcoin is becoming an “investable asset class” and a potential “future reserve asset.” However, he also foresees a downside to this institutional interest in Bitcoin.
The Two Types of Bitcoin:
Mow’s theory suggests that Bitcoin could be split into two categories: “institutional Bitcoin” and “normal Bitcoin.”
Institutional Bitcoin:
- This type will be controlled by financial institutions like BlackRock, making it less accessible to the general public.
- Institutions are likely to keep hold of their Bitcoin, essentially locking them within their systems.
- “Institutional Bitcoin” may trade at a discount compared to the other type.
Normal Bitcoin:
- “Normal Bitcoin” will be free to circulate and spend, just like regular Bitcoin today.
- It can be used for transactions wherever cryptocurrencies are accepted.
- This type is projected to be traded at a higher price due to its greater utility.
Mow compares locked Bitcoin to the practice of sending cryptocurrencies to unspendable blockchain wallets, known as “burning.” Locked Bitcoin becomes less accessible and versatile, similar to these “burned” assets.
Priorly, Samson Mow advised the Bitcoin community to withdraw their holdings from exchanges and maintain control over their assets. He stressed that this is “the only way to know that the Bitcoin you bought exists,” protecting it against potential threats such as hacks or exchange mishaps, like the FTX crash a year ago.
Hot Take: The Future of Bitcoin
Mow’s predictions about the potential split of Bitcoin into institutional and normal types provide insight into the evolving landscape of cryptocurrency ownership. This shift could have significant implications for investors and users alike, impacting accessibility and value. It remains to be seen how the involvement of major financial institutions like BlackRock will shape the future of Bitcoin and its role in the global economy.
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