Bitcoin (BTC) is not a crypto that should be leveraged, says Caitlin Long
Long described last month's pullback as a bull market correction and that the bull market trend has not been broken.
Tue, 15 Jun 2021, 08:12 am UTC
Some crypto industry experts believe that Bitcoin (BTC) is not a cryptocurrency that should be leveraged. For instance, Avanti Financial Founder and CEO Caitlin Long believes that for BTC, solvency matters more than leverage and liquidity.
“We’ve obviously had a correction in the last month or so,” Long responded when asked about the current Bitcoin environment during an interview with Cointelegraph.
However, Caitlin Long quickly pointed out that it’s just a bull market correction. “It’s a bull market correction,” she explained. “The bull market trend has not been broken.”
For Long, the correction flushed the excessive leverage in the crypto market, which is a good thing. “It’s flushing out some excesses in the industry,” she added. “A lot of leverage had leaked into the industry and that was never healthy.”
The Avanti CEO went on to explain that Bitcoin was never meant to be leveraged. “Bitcoin is not an asset that is designed to be leveraged, unlike fiat currencies, which are themselves leverage and leverage gets piled up on top of leverage,” Long explained. “It’s tough for us who really understand the Bitcoin ethos and recognize that solvency matters more than leverage and liquidity.”
“Once you get into Bitcoin and you start losing money, I consider that to be really valuable tuition for really learning what Bitcoin is,” Caitlin Long added. “We've got a lot of new people in this industry now who are going through those lessons, and hopefully, folks will learn from them. Especially in this bull market, there's been so much leverage added to the system. For those of us who've been around a long time, we’ve learned these lessons a long time ago — you don't leverage Bitcoin.”
Long also talked a little about what the upcoming crypto regulations might be. For the Avanti CEO, there won’t be a crypto ban and people will be okay as long as they comply.
“The punchline is that if you pay your taxes and you get regulated, and you don't take shortcuts, you're going to be okay,” Caitlin Long said. “Those that are trying to commit crimes, or defraud consumers, or not pay taxes and not comply with the law, then those people are not going to be okay.”
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