Silvergate, SBV collapse ‘definitely good’ for Bitcoin, Trezor exec says

Silvergate, SBV collapse ‘definitely good’ for Bitcoin, Trezor exec says

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October 12, 2022 by Admin
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What is Silvergate’s SBV collapse and how does it affect Bitcoin? Silvergate, SBV collapse ‘definitely good’ for Bitcoin, Trezor exec says A senior executive of crypto hardware wallet Trezor has said the recent collapse of digital currency firm Silvergate and Specialized Business Ventures (SBV) is ‘definitely good’ for Bitcoin (BTC). Trezor CSO and co-founder Pavol
736 silvergate sbv collapse definitely good for bitcoin trezor exec says

What is Silvergate’s SBV collapse and how does it affect Bitcoin?

Silvergate, SBV collapse ‘definitely good’ for Bitcoin, Trezor exec says

A senior executive of crypto hardware wallet Trezor has said the recent collapse of digital currency firm Silvergate and Specialized Business Ventures (SBV) is ‘definitely good’ for Bitcoin (BTC).

Trezor CSO and co-founder Pavol Rusnak made the statement amid reports Silvergate, a digital currency infrastructure provider, had suffered a major financial loss due to exposure to SBV, a pseudo-bankrupt venture capital firm.

Rusnak told crypto news site the Block he was “happy that BTC wasn’t affected by the crash”. He added that the crash “ultimately promotes the further decentralization of the Bitcoin infrastructure and moves us one step closer to the original Satoshi Nakamoto vision of a distributed, trustless system.

Silvergate’s losses were estimated to be around 30 million dollars, a large part of which was attributed to SBV’s collapse. SBV was owned the Digital Currency Group, the parent company of leading Bitcoin (BTC) exchange Grayscale.

In a report to its shareholders, Grayscale said it had decided to close SBV as it had “become clear that the novel business model it relied on had lost relevance in the fast-paced digital currency world and was no longer serving its original purpose”. The Digital Currency Group, which owned SBV, will take a one-time charge of $25 million as a result.

Trezor, which focuses on providing secure crypto asset storage services, was recently acquired by the Satoshi Labs Group, a Bitcoin-focused venture capital firm.

The Trezor CSO said the collapse “is definitely good for Bitcoin, because it injects more free market dynamics into the Bitcoin infrastructure and makes room for new competitors. I am happy that BTC wasn’t affected by the crash, which ultimately promotes the further decentralization of the Bitcoin infrastructure and moves us one step closer to the original Satoshi Nakamoto vision of a distributed, trustless system.”

The news was generally welcomed in the Bitcoin community, with many commentators applauding the decentralization of the Bitcoin infrastructure.

The collapse of Silvergate and SBV is one of the latest examples of how the digital currency space is constantly changing to reflect the realities of the fast-paced crypto world.