Wallet Of Satoshi Halts US Operations; Here’s Why
Prominent Bitcoin custody platform Wallet of Satoshi recently announced that it has closed shop in the United States. The company also revealed that it will remove its app from the Apple and Google stores.
These recent events indicate that they are altering their working methods. Despite the unexpected news, the firm has assured US users that their money is secure and easily accessible.
In addition, the platform assured users that they could move their BTC to other wallets seamlessly.
Bitcoin Lightning Giant Exits US Market
Analysts studying the industry landscape have identified the United States’ perplexing regulatory framework as a potential catalyst for its exit. This speculation has gained traction in light of recent legal disputes involving prominent industry entities such as Binance and its former CEO, Changpeng Zhao.
These high-profile incidents illustrate the increasing scrutiny and regulatory requirements surrounding the American crypto space. In response to these developments, John Carvalho, CEO of Synonym, a Bitcoin software development firm, suggested that compliance with local regulations could be an insurmountable challenge for Wallet of Satoshi.
Carvalho posited that the company’s decision to exit the US market was motivated by its perceived inability to adapt to these regulatory pressures.
Which Way Forward?
Although it has exited from a major market, Wallet of Satoshi plays an essential role within the Bitcoin Lightning Network framework. The app, known for facilitating many Lightning Network transactions, would likely surpass the one-million-transaction threshold in November.
The application’s custodial approach is often the source of criticism at Wallet of Satoshi. Unlike decentralized alternatives that give users complete fund control, the app retains authority over user assets, sparking debates among advocates about the lack of autonomy in digital currency management.
Despite withdrawing from the US market, the company remains optimistic about advancements that could pave the way to resume serving American customers. The company’s optimism reflects a willingness to reintroduce its services if regulatory changes align with the operational model of Wallet of Satoshi and similar crypto platforms.
The Science Behind the $1M Per BTC Prediction
In another development, Samson Mow, the CEO of JAN3 and an advocate of nation-state BTC adoption predicted that BTC would trade at $1 million in weeks. Mow made this forecast on the X social media platform following the frenzy surrounding the spot Bitcoin exchange-traded fund (ETF) approval.
According to him, some Bitcoiners doubt the possibility of the asset reaching $1 million in weeks should ETFs be approved by the US Securities and Exchange Commission (SEC). Mow drew parallels from Bitcoin’s historical growth when analyzing its potential trajectory, highlighting the rapid ascension from $1,000 to $20,000 in nine months in 2017.
Mow also referenced a note by Hal Finney, one of Bitcoin’s early code contributors. Finney noted that one BTC could be worth $10 million should BTC become the dominant payment settlement system globally. He compared that period to today’s landscape based on block subsidies, exchange dynamics, environmental impact from mining, and the lack of institutional investment.
Mow stated that the increase from $50,000 to $1 million is a 20x surge.
A Detailed Mathematical Breakdown
Meanwhile, Bit Paine reinforced this forecast with a detailed mathematical breakdown. Paine’s analysis forayed into the critical supply and demand dynamics components within the Bitcoin ecosystem.
When estimating new supply for future cycles, he projected around 136,000 BTC for the current epoch and an increase to 656,000 BTC for the following one, totaling approximately 792,000 BTC. Another critical variable considered by Paine was the potential release of old BTC based on the HODL Waves metric, which measures the movement of long-held coins.
Based on previous cycles, where 15-20% of the old circulating supply became available for sale, Paine speculated that up to 20% of these old BTC could be liquidated over the next four years. Should this happen, approximately 3.8 million BTC would flood the market and push Bitcoin to the speculated $1 million valuation.
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