Future of Cryptocurrency: Cryptocurrency Vs Investors
In less than a decade,cyptocurrency like bitcoin, steemit, etherem has already laid a stronghold in the financial sector. All of a sudden just out of nowhere, the currencies had gotten people attention and admiration. And it's already affecting different area's of our general day to day lives, no excluding entrepreneurship.
Accepting cryptocurrency and it blockchain technology to adapt with the already laid down system has being a challenge. For example when the technology company Stripe tried to adopt a bitcoin payment option. Sadly, the result was not a success.
It happened to be that the speed rate in which processing bitcoin transactions takes turned off the custumers. In a post this January, Stripe's project manager, Tom Karlo, said the company's clients rejected the cryptocurrency option due to confirmation lags, high fees , disconnect between transactions and mostly fluctuations of the currency's value in the market.
Digital cryptocurrency has had its fair share of failures also. But despite that, people still believe cryptocurrency has a place in the future. An interview with the CEO of CoinMetro Kevin Murcko, stated his belief that cryptocurrencies are still developing and there is more to see in this currency space.
("The cryptocurrency and blockchain industries are works in progress,")-Murcko said. ("Look at Bitcoin, for example; it's not the way it was almost a decade ago. Aside from the change in value, it's operating in different terrains. It's receiving more feedback in terms of problems that provide areas for growth, development and innovation.")- Murcko
Cryptocurrencies will get more patronage from investors, if more and more governments are planing to regulate cryptocurrencies, investors are feeling more comfortable about putting their investments into cryptocurrency.
With more regulation's added, investors will feel it easier and have less uncertainties about the cryptocurrency market. Many investors are looking into cryptocurrencies as a asset because of their attractive returns: In December last year bitcoin hit a record of almost $20,000 for one bitcoin. Though the price has being reduced since then, experts foretold that Bitcoin's value could actually way up than that figure .
Investor Tim Draper predicted that Bitcoin could reach a value of $250,000 per coin by 2022.
However, any rise toward that direction will be a step by step progress. While some investors are diving in cryptocurrencies, others are watching the market carefully. Therefore, the mplementation of regulations may bring some of those watching to jump in.
Reason cryptocurrencies are being regulated
Security has long been the biggest concerns for investors. Even a survey conducted by Encrybit, shows that 40 percent of the people marked out security as a huge concern.
A considerable amount of times hackers and cybercriminals had taken advantage of non-regulation of the cryptocurrency and made trading in cryptocurrencies unsecured for investors and investment
Although, attempts are in progress to regulate cryptocurrency in the world.
In a recent interveiw about the future of the blockchain industry with Ahmed Khawanky, the CMO of IngotCoin, Khawanky said("the need to regulate the cryptocurrency market as a way to maintain security".
"When you try to push something new to the market," Khawanky said, "there's a need to win the trust of the people. People won't trust something they don't know or like. Therefore, ensuring security is the heart of the overall success of the blockchain technology.")
Cryptocurrencies will always be volatile.
Despite the means to bring in stability in the cryptocurrency market, it's still a challenge to stop or at least reduce cryptocurrencies' volatility. There are many factors still making them volatile. Likes of: the lack of intrinsic value, the lack of capitals among other factors.
Although regulation of the currency will help lower volatility, that alone will not be enough to make a total difference in the volatile nature of the currencies.
As cryptocurrency trading gets more popular, we should be expecting an ebb and flow of volatility. we can't also overrule the reallity of a sudden crash also. But overall, cryptocurrencies can't stop being volatile. And that's something any investor should expect.i