Hello Steemians, the year 2018 is a very volatil year for the cryptocurrency market and many people invested during the last All-Time-High when Bitcoin was around 20000 $ and all Altcoins had an All-Time-High too.
Of course many people are scared because of the big dumps in the last months, but there are many reasons why Bitcoin and the best Altcoins will have another All-Time-High sooner or later again and why the cryptocurrency market has a bright future, even maybe in short- and/or mid-term.
The blockchain technology market is booming, more & more startups joining the blockchain technology market every day and the presentations at the big universtities are full everytime.
The current market capitalization of the cryptocurrency market is nothing agains the traditional currency market and even at the last All-Time-High it was only under 1 Trillion Dollars, which is nothing against bubbles in the finance market of the past, or the volume in the traditional financial markets.
You can trace back the youngest dumps in the cryptocurrency market to the delayed decision by the US SEC about the future ETF´s and I have found an informative article about why institutional investors will enter the cryptocurrency market soon and I want to share thios article with you in my post here:
5 Reasons Why Institutional Investors are Entering Crypto
1. Enhancement of custodial services
Coinbase recently announced that it is considering adding new crypto assets to its custodial services to enable institutional investors to store their cryptocurrency holdings safely. The new additions are likely to have been spurred by a potential demand for custodial services for these cryptocurrencies, which also reveals that institutional investors are looking at cryptocurrencies other than Bitcoin and Ethereum for investment.
Goldman Sachs is also considering offering cryptocurrency custody services which will apparently help overcome the barrier of lack of trusted custodianship for institutional investors. Ledger, the hardware crypto wallet manufacturer, which sold over 1 million hardware company also announced its support for 8 new cryptocurrencies recently.
2: US SEC’s stance on crypto assets
While the US Securities and Exchange Commission has rejected Winklevoss brothers’ Bitcoin ETF, its stance towards cryptocurrencies seems fairly positive. It highlighted that the proposal’s disapproval did not rest on an evaluation of whether bitcoin, or blockchain technology has utility or value as an innovation or investment, but it was owing to the inadequacy of tools for preventing fraud and manipulation with customers.
Kin-Wai Lau, the CEO of Fatfish Internet group recently said in an interview that the world is experiencing a second wave of cryptocurrencies which is being driven by institutional demand, and it just a matter of time before the SEC opens its doors to cryptocurrencies.
3: Regulated crypto ETFs on the cards
After the rejection of Winklevoss brothers’ bitcoin ETF, the US SEC will be looking at 9 ETFs in the next two months and announce its final decision on their status. The SEC highlighted that it is open to the possibility of approving crypto-derivatives in the future. In Europe in the meanwhile, Amsterdam-based speed trader Flow Traders NV announced that it was expanding its trading products to exchange-traded notes (ETNs), which are based on bitcoin and ether.
In Asia, the Singapore-based Huobi exchange had revealed in June that it was creating its own ETF. With all these efforts being made to launch ETFs, the day is not far when the world will see its first regulated crypto ETF.
4: Past performance of cryptocurrencies
It is no secret that the unregulated nature of cryptocurrencies is a double-edged sword. One of its favourable consequences has been the rapid growth is it has witnessed since its inception. Bitcoin, between 2012 and 2016, witnessed a yearly growth of around 106%, which is 6.5 times more than regular tech stocks. In fact, just the last year, Bitcoin saw a growth of 1,318%, with its highest at $19,783 on December 17th, 2017. Ripple was the biggest gainer of 2017 with 36,018% growth. According to Jesse Powell, the CEO of Kraken, the market value of cryptocurrencies will touch 1 trillion this year.
5: Favourable cryptocurrency regulations emerging globally
Many countries are recognising the pressing need to develop a regulatory framework for cryptocurrencies and Initial Coin Offerings (ICOs) to leverage the ongoing transformation which Blockchain is bringing about in the world. In Japan, bitcoin is a legal tender and the country officially recognizes several cryptocurrency exchanges. The country also had a government-backed study group develop guidelines for ICOs, which are being evaluated by Japan’s Financial Services Agency and might become the law in the coming future. In Switzerland, the Swiss Financial Market Supervisory Authority (FINMA) released guidelines for conducting ICOs earlier this year.
Thailand and Philippines have recently launched a regulatory framework for ICOs which dictates that entities seeking to conduct an ICO must file an application and submit the required documents to the respective regulatory bodies of the countries for evaluation. This regulated environment for cryptocurrencies and ICO projects is going to encourage investors to explore the market with confidence.
Article source: https://www.newsbtc.com/2018/08/10/5-reasons-why-institutional-investors-are-entering-crypto/
Greetings from Germany and Steem on everyone!
