Twitter CFO Ned Segal was recently all over crypto news outlets for his comments on cryptocurrency. Speaking to a wide fanbase and followers, he declared he is not investing in crypto and does not see it as a good option right now.
Many critics of cryptocurrency have supported Segal, while pro-crypto experts and communities vehemently disagree with him. However, the disagreements of a select few did not have an effect on the prices of Bitcoin, Ether, and other cryptocurrencies. Post Segal’s comments, both Bitcoin and Ether fell by around 5% each, while other cryptocurrencies like Binance Coin and Litecoin suffered heavier losses.
Before delving into judging Segal’s predictions right or wrong, it is important to understand what he said. In his statements, he excluded the long-term implications of crypto investing and instead focused on immediate realities. With the infrastructure bill passing in the United States, crypto businesses are likely to be under stricter regulation. Recent tax law revisions have also made it mandatory for any digital asset transaction worth $10,000 or more to be reported to the Internal Revenues Committee. In such a circumstance, many agree with Segal in not investing in Bitcoin. However, history has shown us that Bitcoin and cryptocurrencies have bounced back from falls. The most recent example of crypto bouncing back from a sharp fall came after the China ban on crypto. As it stands now, it is hard to assess the long-term implications of Segal’s comments on the crypto market.