The entry into force as soon as possible of a market regulation seems to be the wish of the crypto-community. She also expresses her preference to invest in Ethereum (ETH) at the expense of Bitcoin (BTC) and other altcoins, in a survey of US law firm Foley & Lardner LLP.
A regulatory basis
Investigation of over 60 professionals, including investors and business executives related to virtual currencies , was conducted in the United States. The questions revolved around regulations, investments, Initial Coin Offering (ICO), market capitalization, the future of cryptocurrencies and possible accidents in the industry.
The results demonstrate an increased desire by participants to regulate the cryptocurrency market. This lack of uniformity and regulatory environment is hurting the sector.
Although Bitcoin is the most important digital currency in terms of market capitalization, Ethereum is a better investment choice according to the individuals surveyed. 38% believe that ETH offers better investment opportunities compared to 35% who favor the BTC .
Initial Coin Offering , which is a popular fundraising method within the industry, should be regulated according to 84% of respondents. 86% are considering the introduction of regulatory standards.
However, the community is exposed to certain risks, including piracy and security breaches, threatening the viability and growth of the ecosystem . 71% think they are facing serious risks of theft.
The investors and businessmen interviewed were quite pessimistic about the future of cryptocurrencies. The market will collapse over the next 12 months, according to 41% of them . "This fall will be inevitable within 2 to 5 years," says 29% of survey participants. Nevertheless, they hope to take advantage of price volatility by investing strategically by then.
Allison Charney, partner and member of the Foley & Lardner Blockchain working group, said:"The United States has longstanding anti-fraud laws that apply to cryptocurrencies, but there are potential gaps in this developing area. While concerns about fraud are not necessarily surprising, they provide another sign that industry insiders view the regulation as a whole as a good thing. "
Ethereum will surpass Bitcoin
Professionals in the cryptocurrency industry seem to have a penchant for Ethereum . "It will eventually dethrone Bitcoin in terms of market capitalization , " said 45% of participants , although it is too early to say something about it. 5% believe that one year should be enough for the second digital currency to reach the top spot. 14% think this will happen in 1 to 2 years. 18% state that a longer period is necessary, ie 2 to 5 years. 5% expect a period of more than 5 years and only a minority is convinced that Bitcoin will always be at the top of the rankingPatrick Daugherty, associate and member of the Foley Blockchain working group, concluded the report by revealing:
"Bitcoin and Ethereum are the safest assets because they are the only cryptocurrencies on which the SEC and the CFTC agree. This does not mean that investment in Bitcoin or Ethereum is safe - it is not. Nor is it a prediction that these virtual currencies will survive among all their competitors. A competitor of Bitcoin and Ethereum could emerge to take their place, or the entire asset class could disappear. "Do you think Ethereum is a better investment opportunity than Bitcoin? Tell us in the comments below.