Although change is guaranteed, there is no scale and scope for that change. For the financial industry, blockchain – the technology that covers Bitcoin (BTC), Ether (ETH), unwanted tokens (NFT) and other digital assets – has brought us to the forefront.
What will be the future of money?
We’ve been working in the forefront of crypto for the past 10 years, protecting large and small investors alike and allowing them to invest their money in these exciting new frontiers. The experience we have gained here helps us see what is coming our way.
In this historical epoch, countless results are possible but one thing is certain: the effectiveness and innovation of technology will have a positive impact beyond the conventional financial sector.
The mature digital resource industry is coming
Blockchain provides a faster, more efficient and more secure structure for financial transactions when compared to contracts, transactions and records that currently define our economic, legal and political system. The Harvard Business Review summarizes this similarity: “[The old financial structures] Like a gridlock during rush hour to stop a Formula 1 race car. In a digital world, we need to change the way we control and maintain administrative control.
From generation to generation, technology has updated how we complete financial transactions. Modern credit cards were first sold right on the Internet in the late 1950s, in 1994, PayPal was founded in 1998 and went public, and was sold on eBay in 2002, and Satoshi Nakamoto started the blockchain revolution in 2008. Today, financial heavyweights no longer stand on the sidelines. And 55 of the world’s 100 largest banks have some form of exposure to this new technology.
The first international rules were transferred to Japan in 2016 after a hack against a crypto exchange, including the theft of 850,000 BTC against Mount Gox. Since the success of any financial market is based on predictability, security, and general market efficiency, regulators tend to think about the direction and effectiveness of their involvement with cryptocurrencies.
Related: Will the regulation adapt to crypto or crypto regulation? Experts answer
Regulators and businesses want to ensure that investors enjoy certain protections in any marketplace – digital or otherwise – to participate. Consider the Federal Deposit Insurance Corporation (FDIC) or eBay Money Back Guarantee for US banks. Without control, market participants may face long-term and short-term risks.
Regulators also ensure that markets will play by the same rules. Commodity Futures Trading Commission Commissioner (CFTC) Dan Barcovitz said in June:
“It is impossible to give an unregulated, unlicensed derivatives market the opportunity to compete with a fully regulated and licensed derivatives market.”
And, importantly, it is not just regulators and governments that will decide the future – it is up to us, investors, leaders and consumers – to determine how we want to use digital resources in the future.
Developed language for useful digital resources
As the market matures, so does the cryptocurrency industry. Regulation and widespread adoption will change the way the media and the public perceive and talk about digital resources.
As crypto matures it will retain its unique character – HODL, FUD, and don’t expect the word “moon” to disappear – but it’s important that a large portion of blockchain investors feel comfortable in space.
This may seem like a small thing, but the focus on integrating crypto and institutional finance languages has enabled us to work with a variety of organizations over the past 10 years, ranging from neobanks, fintechs and brokers to banks, hedge funds and family offices.
As the long-term value of the blockchain evolved over time with large investors evolving, they began to diversify into major holdings to incorporate crypto, thus increasing the relationship between these new assets and legacy assets containing historical value – such as gold, bonds or central banks. -Supported Fiat.
In business, you are judged by the company you own, so we won’t get that “sincere hug” without embracing the language of financial services and regulators more widely.
Still, it’s not unreasonable to evaluate crypto as a commodity instead of a digital currency – Jerome Powell, chairman of the US Federal Reserve, told Congress in 2019 that Bitcoin is “a speculative stock of value” like gold. But Bitcoin is not the whole story, just the most talked about. The industry needs to stop focusing on a particular use for technology and start talking more about money, investment, financial management and smart payments.
Related: Blockchain technology can change the world, not just through crypto
The industry is bigger than any one token
We’ve discovered over the last 10 years that customers are attracted to growing assets that have utilities and can solve complex problems.
Different digital currencies have different uses. For example:
- Tether (USDT) will work well for payroll because it avoids the volatility of bitcoin tied to the US dollar.
- Brave’s Basic Attention Token (BAT) is creating a course for the future of online content by paying BAT to users of its browsers to view ads. Those users can tip anyone on the Internet using BAT in their digital wallet.
- And the Audius Governance Token (AUDIO) makes Crypto an attractive case for a major role in the future of the music industry, providing security for artists and fans, access to exclusive features, and community-owned governance.
Blockchain is a common misconception among ordinary people about solving problems, not occupying the world, replacing fiat or banks. Although BTC may be the most recognized digital asset because it has name recognition and it came first, it is the only asset class among many.
So what does the future look like?
Congress opened the door for regulators earlier this year when the Senate passed an infrastructure bill that includes an amendment that would re-examine the crypto industry.
Investors, digital asset exchanges, smart technologists, government officials, regulators and everyone in between will benefit from a more mature marketplace that protects its consumers and values transparency, predictability and honest communication. Similarly, the majority benefits from transparency that any digital asset contains real value and that exists as a manipulative tool to enrich the rich.
We’ve been there from the beginning and we’ve seen the rise and flow of trends. But we have also seen that what survives at the end of the day is always a brilliant idea that solves the problems that arise in our time.
Yes, change is here. The mature digital resource industry has begun to emerge over the past few years, with language combinations that have become more sophisticated and invited a wider audience to our tables. The resources and insights that these new audiences bring will, in turn, give them rich confidence in all industries. This confidence will lead to the adoption of blockchain technology to uncover problems that no one has ever dreamed of can be solved through blockchain.
This article does not cite its references or sources. Each investment and trading move involves risk and readers should conduct their own research when making decisions.
The opinions, thoughts and opinions expressed herein are the sole property of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Julian Sauer He is the CEO of Bitstamp and in charge of the overall strategy and vision of the company. In addition to financial services and consulting, Julian brings building0 years of experience and experience building financial institutions.