This is one question I keep getting, over and over again, especially in these last few months – people were expecting the market to be bullish again but it’s been bear for awhile now. Crypto winter eating into 2019!
So, how do I feel about being in the crypto market?
I feel neutral. To be honest. I don’t think it’s dying off at all, it is stabilising. Let’s be honest here – end of 2016- start of 2017 bull market was ridiculous for bitcoin to hit 20 grand. Now it’s starting to be realistic.
In fact, I feel positive.
There have been a lot of news recently with mainstream outlets picking cryptocurrency up. Even Fortnite is starting to accept Monero for payments. This indicates acceptance. It’s also been speculated that 2019 will be the year of regulations firming up – but my thoughts are that there has to be a first-mover. Once a country starts regulating, others would follow. And sure, lots of scams and altcoins are dying off – but they deserve to be there anyway.
Will cryptocurrency be widely adopted in the next year?
Personally, I don’t think so. It’s too soon. Even if it will be, it will not be any existing crypto, especially if you’re referring to banks. Banks will always want control, and most of them are already looking into using blockchain for fast and efficient cross-border settlements. The next step would definitely be releasing their own cryptocurrency – but never truly autonomous and decentralised. Control is key. Governance is key for mainstream adoption. As many people say, true democracy will never work.
However, we notice firms joining the crypto gang. Visa has already acquired Ripple’s cross-border payments partner Earthport. Also, securities are the next big thing – a new upcoming exchange will be listing Apple, Tesla stocks, digitized, onto their exchange. Regulations have been tightening up, with Japan already recognising a self-regulatory association to regulate crypto exchanges.
Did you also know that while banks today are still fined for being non-compliant, crypto platforms have already stepped up and tightened their AML, KYC processes? This could come shocking to most of you as it is mainstream opinion that cryptocurrency is unsafe and unregulated. However, due to the tightening of processes in recent months, legitimate platforms have been very critical and careful with their KYC, AML and CFT processes. KYC = Know Your Customer, AML = Anti-Money Laundering, CFT = Combating the Financing of Terrorism. These are mandatory security processes taken by banks to make sure that every transaction and every cent is accountable to the good of the society, and of course, its economy.
It is indeed a scary thought for a virtual currency backed by a complicated tech (which most people still don’t understand) to become mainstream and widely adopted. It’s like when mobile banking first started – who really felt safe transacting through your mobile devices? Maybe it’s still a little early for us to be entirely comfortable with the idea that cryptocurrency replaces fiat money, but as technology advances so rapidly, I am sure that day will come real soon.
It is normal to fear what you can’t understand, but with the technology today, and looking at how excessively Gen Z & Gen Alpha already rely on mobile and tech devices, it shouldn’t be a far-fetched thought to envision that cryptocurrency will take over the world and be the norm one day.