Cryptocurrencies News – A potential Bitcoin Split is on the horizon. Samson Mow, the strategic mastermind at BlockStream, predicts a future where Bitcoin could split into two distinct categories. This article delves into the implications of this split and the role of BlockStream in navigating these uncharted waters.
Reuters—Samson Mow, the Chief Strategy Officer at BlockStream and CEO at Pixelmatic, predicted a potential split of Bitcoin into two separate categories during a video interview on Wednesday, November 8, 2023.
Institutional Interest and Its Implications
Bloomberg—Mow’s prediction follows the growing interest in Bitcoin from financial powerhouses like BlackRock (NYSE: BLK), which recently launched Bitcoin spot exchange-traded Funds (ETFs). He views this rising institutional interest as validating Bitcoin’s status as a credible investment and its potential future role as a reserve asset.
However, Samson Mow also cautioned about the possible adverse effects of this institutional Bitcoin fever. He proposed that it could result in the emergence of institutional and normal Bitcoin. According to Samson Mow, “institutional Bitcoin” might become trapped within the system as companies like BlackRock are reluctant to release their BTC holdings.
This situation could lead to two different BTC prices. “Institutional Bitcoin” might trade at a discount due to its restricted utility compared to normal Bitcoin. Conversely, free Bitcoin could trade at a premium and be withdrawn from the market like cryptocurrency burning.
Prior to this prediction, Mow had urged the Bitcoin community to move their BTC from exchanges to self-custody. He insists that this is the only way for investors to confirm the existence of their purchased BTC.
Conclusion
While the potential Bitcoin split could introduce new dynamics in the cryptocurrency market, it could also lead to market instability. Therefore, it is crucial to monitor these developments closely for their potential impact on the economy.