2018 marked a new era for the digital currency: what could once be called "The Wild West Days of Crypto" came to an end and the real regulatory development in space began. Although many of these regulatory measures are still being implemented and prices are currently much lower than their historical high 11 months ago, I believe that 2018 was a positive year for space. Ultimately, I am confident that all efforts made on the cryptocurrency regulation will pave the way for general adoption in 2019 and beyond.
But it is probably no surprise that I am a crypto defender, and I felt it was important to also evaluate the public sentiment on this topic. So Bitcoin's IRA hired an independent research firm to survey 500 Americans about their attitudes towards digital currencies, and the results were illuminating and largely optimistic. Let's take a closer look.
Most Millennials have a positive feeling about cryptocurrency
More than 75% of interviewed millennials interviewed expressed a positive attitude towards cryptocurrency, along with almost 66% of Gen Xers, more closely associating terms such as "investment", "curiosity" and "wealth" to the digital currency.
I believe this positive sentiment has been largely influenced by the recent influx of institutional interest in the crypto and blockchain space. JP Morgan conducted successful test of its blockchain-based payment system, Morgan Stanley is building a Bitcoin swap exchange product, and Goldman Sachs has announced that he is considering how to use services that involve physical Bitcoin – and these are just a few of the main recent announcements.
However, if we step back and look at these trends in a broader framework, I believe that these important financial institutions would not have expressed such interest if the regulatory sector – in particular the SEC – had not intervened and established the necessary parameters. Regulatory oversight was necessary and unexpectedly delayed, and only when it arrived did we see this heightened level of institutional interest and consumer enthusiasm, which bodes well for the longevity of the crypt.
All age groups believe in the power of alternative resources
In general, all the interviewed groups believe in the power of alternative investments, with more than half of Gen X respondents and nearly half of millennials and baby boomers claim to believe that alternative investments, including Bitcoin and real estate, have the greatest potential for aggressive growth.
I was very excited to see these statistics, and I think part of the enthusiasm for Bitcoin as an alternative investment is probably the result of the excitement surrounding the potential passage of a Bitcoin ETF.
We have seen in the past how an ETF can have a dramatic impact on an asset: in 2003, the price of gold rose significantly following the launch of an ETF on gold, and many believe that the same price increase could occur for Bitcoin on the passage of a Bitcoin ETF.
The ETF CBOE VanEck SolidX Bitcoin, although currently awaiting approval by the SEC, has stood out in its proposal for a physically supported model rather than in a futures-based fund, and offers safekeeping and sound insurance policy missing from other applications.
"The company's commitment to bring to market a liquid, insured and appropriately regulated physical Bitcoin [ETF] is resolute, "said VanEck's director of digital asset strategy, Gabor Gurbacs.
I, along with a credible CBOE member, am confident that this Bitcoin ETF will pass and, once done, will make Bitcoin an even more powerful alternative resource.
Furthermore, Bakkt, cryptographic startup supported by Intercontinental Exchange, Microsoft and Starbucks are well on their way to start trading with Bitcoin Futures stocks at the start of next year. By providing the first fully integrated package combining an important regulated federal exchange, clearing and filing supervised by the exchange as well as an off-blockchain solution to process most transactions, Bakkt could provide the necessary security and stability to meet investors "Needs and finally make the prevailing bitcoins at the institutional and mainstream level.
Takeaway: the industry is evolving and improving due to regulation
With any industry in the midst of progress, there are always sobs along the way. We saw it recently when the Exchange of Crypto Canadian MapleChange was breached in October. The hack has been very unlucky and once again underlines the need for investors to perform due diligence on the encrypted company and on the services they are using. Fortunately, thanks to the passage of innumerable regulatory initiatives during 2018, the cryptographic sector seems to take seriously the security of assets such as the SEC.
If the positive results of the survey are indicative, the cryptocurrency sector has already made great strides in a short time in the development of legal, scalable, innovative and secure solutions.
Guest Post Author: Chris Kline, COO of Bitcoin IRA
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