But while it stands a unique and disruptive example of a new era, the cryptocurrency wo should avoid the temptation to express disregard for the markets it intends to interrupt irreparably. In reality, there are many lessons that cryptocurrencies can learn from them, in particular, from Wall Street.
One of the first lessons that the scrambled can gather fairly quickly is that when you approach old markets with a new take, this allows you to discover the features of the system that have stopped working or finding faults that hold the industry from its full potential. potential. This is something that the financial sector has not had the luxury of doing; whenever there was an elusive market, a crash or a depression, the financial industry had to learn the hard way, without maps to trace its future trajectory.
This is why cryptocurrencies should never be disdainful of the financial world, there are a number of practices that have been adopted over the years that will do nothing but benefit from cryptocurrencies in a substantial way. In this regard, it is a break with a modest amount of wisdom that is required when going against the old institutions.
Here are some of the ways cryptocurrencies can learn from the financial sector, taking into consideration the hard lessons and secular wisdom of areas like Wall Street, in order to create a truly revolutionary financial world.
Bringing More Money – United
This lesson is one that may be directed towards the current state of currency cryptocurrency exchanges, which work more like a patchwork of markets spread across the Internet, without clear unifying characteristics, which demonstrate a problem for any user seeking transaction security and any regulatory body in an attempt to make them accountable.
The solution? Unify. In this way, the benefits become even more distinct: reduced commissions for users, reduced market volatility, including faster transactions between users, regardless of scale. These are the types of net positives that attract more consumers to the market instead of pushing them away.
One of the additional features of this is that with a better, unified view, it increases the likelihood that richer investors will be attracted into space, trying to capitalize on an encrypted investment, further enhanced by seeing a safer, united market.
By doing so, it would drastically reduce the time needed to bring cryptocurrency into the mainstream, showcasing the safety and potential for the end-user, encouraging them to take part in the cryptocurrency ecosystem. in a more substantial way.
Another positive network? A unified market means that the prospects for companies and new businesses seeking to get investments also increase exponentially. This also includes new investments, risk funds and small developers, all of whom see increasing the chances of obtaining finance or finding new and unique startups in which to invest.
What we find, in our current panorama, is that it is the general aversion to unification and the lack of trust that restrain the world of cryptocurrencies, preventing it from realizing its potential as a result.
More money at stake will encourage greater security
One thing that the financial system has learned is that with regulation and centralization, the rate of corruption and money laundering can be drastically reduced to a minimum. If there is a lesson that the Cryptocurrency market would do well to learn, it is that corruption can happen to any industry, regardless of how idealistically prone it is.
Regardless of how innovative and based on cryptic good intentions like Bitcoin, there will always be a number of users who will try to take advantage of it for more surreptitious uses. Whether it's extortion, as we saw from WannaCry in recent memory, or for obscure web transactions like traffic or corruption, the financial industry has had to fight these unfair practices to learn its lessons.
While the financial industry continues to struggle against these embezzlement, it now has the strategic advantage, namely that it offers a highly centralized system.
The future of cryptocurrencies can be subdivided, to a certain extent, into two distinct scenarios. The first is that if the criptos remain decentralized, the same volume of poor practices will continue without legal recourse or protection, translating roughly into an incessant, wild west of crypt. This means that any unification of trade can not be achieved due to the unnecessary growth of poor practices, exorbitant taxes and a general lack of trust.
While decentralization and cryptocurrencies are masked by idealists as the best cybercrime counterpart, each has their own unique problems that leave them open to malicious intent. From investors to illicit trade to major influencers, they are all vulnerable to hackers for one reason or another. In some cases, the crypto-issuers opening of YouTube and Twitch led to the net loss of millions due to coordinated efforts to take off their money.
If there is any hope for cryptocurrency when it comes to gaining mainstream attracting the attention of financial institutions, retailing and banking, must take the initiative to provide an improved level of security and control of those elements in the cryptographic ecosystem that may pose a threat to other users in some form or form. 19659003] The ability to retain individuals, exchanges or groups responsible will be the subject of the trick or break for the world of cryptocurrency, and if it were able to inaugurate this era of greater security, it will be a better world, more open and more widespread than that that we see now.
Application for the API – Use one based on FIX
Some of the problems that have pursued the business community have been those that surround the friction in completing the transaction s, while allowing customers to communicate effectively with the parties involved. How were these problems solved? It was through the development and introduction of the FIX API in 1992 by the duo of Bob Lamoureux and Chris Morstatt.
Since its introduction, a much simpler method of communication and transactions between the various parts is allowed. Prior to this system, only manual communication existed, which significantly slowed market movements.
Currently for cryptocurrencies, there is no such system to simplify transactions and communications between buyers and sellers. This is particularly strange if one considers that having a more connected system would be a great advantage for the cryptocurrency of all places, it is one that has not explored but that it should certainly.
Playing the ignorant will not help growth
One of the other urgent issues that the world of cryptocurrency is currently facing is this: it is becoming excessively saturated, which is not so bad for cryptocurrencies, but leads with itself some serious concerns. Without organization, strong regulation / control and no truly unified or cohesive structure: this is a recipe for long-term disaster.
At the moment, the only true unifying element for cryptocurrencies is the simple fact that people buy them as a means of making a profit, anything beyond this connection is a pleasant coincidence. If this continues, cryptos will roll where they are now when they could be something much more.
Exciting? Yes, innovative? Yes, there is no doubt that it is a truly electrifying and moving field, but it is stuck in a position where it is not simply rationalized, easy to use, which means that any possibility of attracting a larger population is reduced unnecessarily. .
Ignoring the lessons learned from generations of Wall Street investors, the world of cryptocurrency is simply hindering its growth and potential for no reasonable reason.
Simple and simple, market volatility is not attractive to anyone, simplicity, on the other hand, is nothing but attractive. Taking the last course, adoption rates increase, the number and ease of transactions improve, inevitably bringing the cryptocurrency market in its entirety into a much more exciting place.
While it remains one of the most disruptive areas of innovation for the moment as anyone can remember, being chauvinistic towards those institutions that hopes to change does not do any good for anyone. The issues of security, regulation, responsibility and unity are those that the cryptocurrency can do well to know under the protection of Wall Street.
Just like in the banking world, people want a simpler, safer and faster way to store, move and ultimately protect their assets. And just like any good bank, the cryptocurrency market must adapt to the greater ease of the end user, not vice versa. The world of cryptocurrency, in taking old lessons, may find itself running at a much greater pace than was possible before.