Keep Calm and Embrace the Crypto Future
Shutterstock.com
Main page Opinion, Bitcoin, SEC, Opinion, Crypto Market, CFTC, Bitcoin-ETF

Wednesday’s red market might discourage investors from crypto, while nobody really knows why prices are fluctuating, opinion makers like Mike Novogratz and CFTC’s Christopher Giancarlo might be one of the reasons.

Crypto economy is being discussed everywhere, there are countless studies, investigations, researches made, however, no one really fully understands how the price of the good old bitcoin works.

This very volatile, decentralized asset created its own billionaires, became part of the pop-culture and is probably completely misunderstood by all of us.

While doing all these, this game-changing innovation also created its own talking heads, opinion makers, manipulators, marketers, as well as risks, heists, and most importantly it stands tall in front of the traditional “money industry”, a time traveler from the future, threatening the very foundations of the classic economical approach.

In the U.S., Commodities Futures Trading Commission (CFTC) and Securities and Exchanges Commission (SEC) are the most important regulators when it comes to the future of cryptocurrencies and derivatives. While CFTC is focused on institutional investors, SEC is dealing with retail ones.

The chairman of CFTC, Christopher Giancarlo does not think that cryptocurrencies might one day dethrone the U.S. Dollar, but he considers that there are countries where crypto will prove to be more useful than local currencies. According to Giancarlo more than half of the fiat currencies are not worth the paper they are printed on and crypto might provide a solution in the next decade.

Based on his words, the U.S. needs more time to carefully consider the future of bitcoin and crypto.

SEC’s refusal of bitcoin-ETF is not a big surprise for the chairman as well. In short, he admits that these institutions are old:

“We’re operating off a 30-year piece of – you might call it – software we’re trying to repurpose for a new innovation that didn’t exist when these statues were written.”

It feels like from the regulator's point of view that the U.S. is under an influence of old systems, old concerns, and old disappointments.

Introducing “Bitcoin Bull” Michael Novogratz

On another hand, there are people with a strong influence who believe in the future crypto economy, like Michael Novogratz. He points out that Coinbase, a cryptocurrency exchange, has a valuation of almost $8 billion, and that should mean, there is a strong traction for crypto among the people.

Last year he predicted the price of bitcoin for 2018 to reach $40,000. Now, he doesn’t think that bitcoin will reach $9,000 this year. He believes that large institutional investors will pour money on bitcoin very soon.

Bet Your Bottom Bitcoin

Maybe cryptocurrency prices are being affected by the perception of the people and that can be changed by opinion makers like Giancarlo or Novogratz. When SEC refused Bitcoin-ETF the first time, it plunged the prices but after the last rejection Bitcoin regained its place in a matter of hours.

It is expected to see a substantial growth on crypto when a new product has been introduced. This did not work for XRP recently.

Warren Buffett Considers Bitcoin To Be Rat Poison

When no one really knows how the market is changing its direction, everyone has a grand opinion who to blame. Is it WSJ which pointed out the trading bots, is it Warren Buffet who called bitcoin a “rat poison”, is it SEC who still needs more time to consider bitcoin-ETFs, if not them, then who?

It is clear that the scandals, frauds, thefts and hacker attacks are diminishing crypto’s hard-earned reputation. Large companies and governments are investing in the technology of crypto but not in itself, aiming to use blockchain to make easier, safer, faster profits.

If we start seeing dependable projects which are focused on innovation and enhancing our lives, maybe then we can see a mass adoption and the price of Bitcoin won’t really matter then.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

Read also:
Please describe the error
Close