Bitcoin will become a mainstream currency quickly, thanks to the advantages of the Lightning Network.
Cynthia lummis, a Republican US senator, is one of the personalities who have been betting on Bitcoin since the early days. Recently, the politician has pointed out that Bitcoin will become a common medium of exchange and, although right now it is considered a raw material, it could soon become a currency for payments, thanks to Lightning Network.
In a recent interview, Senator Lummis has pointed out that the Commodity Futures Trading Commission (CFTC) has decided to treat Bitcoin as a commodity, with the aim of regulating not only the exchange market, but also the futures and other investment products. For its part, the SEC intends for companies that hold Bitcoin and other cryptocurrencies in custody to report on them as a passive asset and to add information about the possible risks what they mean for customers.
Lummis has noted that at this point, Bitcoin is legislated as a commodity, that is, as if it were a raw material like wheat or gold. However, at some point it will will become a means of payment, something that could happen very quickly, thanks to Lightning Network.
CBDCs and the independence of Bitcoin
On the other hand, the Biden administration has focused much of its regulatory efforts on stablecoins and central bank digital currencies (CBDCs). In fact, the president considers the development of a central bank digital currency (CBDC) “urgent.” CBDC and a digital dollar.
Lummis has spoken out against Biden's executive order, as she is convinced that a central bank digital currency is not necessary. However, the senator remains convinced that even with the creation of the digital dollar, cryptocurrencies will have their own space. Especially Bitcoin, since its decentralization and independence of the state, will allow you to continue growing.
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In this regard, the senator has also expressed her desire for the US dollar to continue to be a global currency. However, she has also expressed her concern about the excessive inflation we are experiencing and has given “thanks to God” for its existence. Bitcoin as protection.
Bitcoin outflow volume approaches 100.000 BTC per month
According to data from Glassnode, the Monthly Bitcoin Outflows are almost 100.000 BTC. This is an abnormally high volume, last seen after the liquidity crisis in late March 2020.
Similar to what happened in 2020, this high level of outflow could be due to the creation of a price bottom that eventually translates into significant gains. In this regard, Glassnode data also indicates that Bitcoin could be undervalued by up to 55%.
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