The cryptocurrency market has been in the news lately as recovering and heading towards a bullish move. From below $300 billion just a few months ago, it is nearly $500 billion right now and is growing as we speak.
When it comes to its future, though, there are a lot of scenarios that can play out this year. What we got is this: we should expect a launch of a lot of new crypto funds. Today there is somewhere over than 100 with approximately $2 billion in assets. The increased number of these funds will lead to the development of new crypto asset investments. 2018 is a year where we are most likely to have other jurisdictions to follow suit leading and slowing ICOs in the short term.
This will lead to what some people call it ‘’ jurisdiction arbitrage’’. The UK Treasury stated that is set to regulate cryptocurrencies with anti-money laundering and counter-terrorism rules which means that traders will have to reveal their identities in some cases. This can lead either to fall in price in the short run or legitimizing the industry and making it closer to the financial mainstream in the long run. Because users are aware of the disadvantages of Bitcoin and Ethereum for example, they will try and find new alternatives. So, new currencies will rise, and financial institutions will come to the cryptomarket and cryptocurrencies will become a part of the traditional financial system.
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