CSO of Blockstream issued important message to Bitcoin community
BlockStream CSO and chief executive at Pixelmatic Samson Mow has predicted a possible split of Bitcoin into two “types” in the future. He believes it may be caused by BlackRock and other major financial institutions rushing to enter Bitcoin and launch their Bitcoin spot ETFs.
“We may see Bitcoin bifurcation in the future”
When asked during a recent video interview about his take on BlackRock and other fund managers entering BTC, Samson Mow said that he believes that interest from BlackRock (the largest fund manager in the world with billions of USD in assets under management) is overall a good sign, since it may serve as an indicator that Bitcoin is “an investable asset class and the future reserve asset.”
However, he admitted that there is also a negative side to all this institutional “Bitcoin fever” we can see now. The downside, he believes, is that the coming of all these financial institutions into BTC may lead to the “bifurcation of Bitcoin.”
“Institutional Bitcoin” v. “normal Bitcoin”
Mow explained what he meant: should this happen, Bitcoin will split into “institutional Bitcoin” and “normal Bitcoin.” This institutional Bitcoin, per Mow, may be forever locked in that system (held by institutions) since BlackRock and other corporations will hardly let go of this BTC.
This may lead to two different prices for BTC, Mow believes. In this case,” “institutional Bitcoin” will probably trade at a discount since it will have less utility than “normal Bitcoin,” which can be spent anywhere that crypto is accepted.
The “free Bitcoin” (as opposed to BTC locked by BlackRock) will be traded at a premium, according to Mow, and the locked Bitcoin will be taken off market. This can be compared to “burning,” when crypto, and meme coins in particular, as well as Ethereum and BNB, are regularly sent to unspendable blockchain wallets and can never be withdrawn.
Mow’s earlier warning to Bitcoin holders
In his previous message to the Bitcoin community, Mow urged BTC holders to withdrawn their crypto from exchanges into self-custody. The reason for this was that this is “the only way to know that the Bitcoin you bought really exists.” Otherwise, it can be lost, either owing to hackers or as occurred in the case of the FTX crypto giant, which collapsed a year ago.
Its founder and CEO Sam Bankman-Fried began using customer funds to help its pocket trading firm Alameda Research to stay afloat, but ultimately, both companies went bankrupt, and SBF was arrested for defrauding investors and went to prison.
About the author
Yuri is interested in technology and technical innovations. He has been writing about DLT and crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. He has written for multiple crypto media outlets.
His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.