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Former SEC Chair Gary Gensler emphasizes that Bitcoin’s global appeal solidifies its long-term viability, while altcoins face significant risks.
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He cautions that many altcoins lack strong fundamentals, indicating their value is often driven by market sentiment rather than intrinsic worth.
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Gensler compares Bitcoin to precious metals, asserting that the vast majority of cryptocurrencies will fade over time, much like fleeting trends.
Former SEC Chair Gary Gensler sees Bitcoin’s lasting appeal contrasted with an uncertain future for many altcoins, emphasizing fundamentals over sentiment.
Why Gary Gensler Believes in Bitcoin’s Enduring Potential
In a thought-provoking interview with CNBC, Gensler pointed out that Bitcoin’s global interest significantly contributes to its staying power. He remarked, “Something like Bitcoin may persist for a long time because there’s 7 billion people around the globe, a real keen interest in it.” This statement encapsulates the unique position Bitcoin holds compared to other cryptocurrencies.
Gensler, who led the SEC from 2021 to 2025, has been a vocal advocate for improved regulation in the cryptocurrency space. His remarks stemmed from inquiries into the shifting landscape of regulatory actions against several cryptocurrency entities during his tenure. While he did not delve into the specifics regarding recent case dismissals, he broadened the discussion to the overall market.
“This is a very small part of the financial markets,” he explained. “If you were interested in this, think about every financial asset sort of trades on a bit of fundamentals and sentiment. But this field is almost 99, or maybe one might say 100% sentiment and very little on fundamentals.” This observation calls attention to the risky and speculative nature of the cryptocurrency market.
Gensler underscored the importance of survivors in the crypto space having robust fundamentals, warning that many projects thrive primarily on hype. He pointed out that these assets are generally unsustainable, predicting that most will experience a decline in value over time.
Altcoins: A Sentimental Market
When discussing whether Bitcoin should be considered alongside its altcoin counterparts, Gensler likened it to precious metals. He stated, “There are only two or three precious metals. We humans have a certain fascination with two or three precious metals like gold.” This analogy underscores Bitcoin’s unique status amid a sea of cryptocurrencies.
According to Gensler, only a select few cryptocurrencies, including Bitcoin, are likely to endure. He cautioned against the many altcoins that are propelled by trends, memes, or fleeting social sentiments, indicating that they are unlikely to sustain long-term interest and value.
His insights echo sentiments expressed in earlier discussions about the crypto market. In a January 2025 interview, he acknowledged Bitcoin’s historic volatility yet continued to express confidence in its future potential, suggesting it might share characteristics with gold, which has maintained its allure for millennia.
Despite his positive assessment of Bitcoin, it is notable that Gensler does not personally invest in Bitcoin or any other cryptocurrencies. This stance raises questions about the financial interests of regulators in an ever-evolving market.
Gensler’s commentary reflects a broader ongoing discourse about the distinction between Bitcoin and numerous altcoins. While Bitcoin is increasingly viewed as a store of value, many other cryptocurrencies continue to struggle in proving their legitimacy and long-term viability within the financial ecosystem.
Conclusion
In sum, Gary Gensler’s insights reaffirm the notion that Bitcoin’s appeal is grounded in its fundamentals and global interest, setting it apart from other cryptocurrencies. As the crypto market faces ongoing scrutiny and regulatory considerations, the sustainability of many altcoins remains in question, with Bitcoin positioned as a potentially resilient asset. As the landscape evolves, it will be crucial for investors to focus on the fundamentals when assessing the future prospects of various cryptocurrencies.
