Five Events are on the Way in Cryptocurrency Circle the Next Half Year
For cryptocurrency investors, 2018 is a disastrous year. After the boom in the bull market in 2017, there were calls for “all in blockchain” everywhere. Unfortunately, after reaching a record high in January 2018, the price of cryptocurrency soon fell to the bottom, with many coins fell by more than 95%. In the past year, the media have announced Bitcoin’s death more than 100 times.
Fortunately, the Bitcoin market shows signs of a turnaround, and many people have missed the best boarding time. Moreover, five events are on the way the next half year.
The Launch of Bakkt
Bakkt is one of the most discussed and promising projects in the cryptocurrency circle. What Bakkt wants to do is to provide a comprehensive platform for cryptocurrency. Users can not only exchange cryptocurrency and assets, but also use it for real consumption. Customers can pay in Bitcoin by installing Bakkt payment software in Starbucks stores.
Regular trading on a transparent platform and its solutions for traders have attracted the attention of many large institutional investors. Unfortunately, the launch of the platform has been delayed twice because more time is needed to simplify the customer registration process and obtain approval from the US Government. However, several leading experts in the industry say that this situation will not last long.
The Approval of ETF
Exchange Traded Funds (ETF) is a so-called “index tracing tool”. It traces the official price of an asset rathe than a real bitcoin. Investors buying and selling an ETF is equivalent to buying and selling the index it traces, and can investors can gain a return consistent with the index. ETF enables investors to trade Bitcoin easily without owning real Bitcoin.
It is expected that after the approval of the first ETF, there will be a large influx of institutional investors, who have a large amount of money to invest in. It is often compared with the first batch of gold ETFs. After the first batch of gold ETFs came out, its prices soared.
Entry of Institutions
Many companies are eager to invest in cryptocurrency, but they hesitate because of the lack of proper infrastructure and regulation. Various products like ETF are already active. BinckBank provides Bitcoin ETN, and SIX Swiss Exchange, a Swiss Zurich Stock Exchange was approved the listing of Encrypted Currency Trading Products (ETP) to allow investors to hold a basket of various combinations of encrypted currencies.
In the next few years, the largest companies in the global financial market are also expected to launch a variety of encryption platforms. For example, Fidelity, one of the world’s largest asset managers, will start offering its own services in early 2019 to allow large investors to invest in bitcoins and other cryptocurrency. And Nasdaq will also offer Bitcoin futures.
According to Deadcoins, more than 1,000 cryptocurrency projects have “died”. Bear market is a screening machine, fraud and garbage projects have been washed out, which is very important to the industry. Projects that have withstood the test of “survival of the fittest” in the bear market have been working hard over the past year to develop the products they promised. Therefore, it is expected that there will be many technological breakthroughs in the coming year, which will certainly have a positive impact on the market.
Regulation and Legalization
The rapid emergence of cryptocurrency has led the government to further improve the regulation. Fraud occur in a variety of ways, and there are still some things that need to be banned and punished in the daily transactions.
Relevant departments are making efforts to establish a set of regulatory framework as soon as possible. For example, the Group of Seven (G7) Financial Action Task Force on Money Laundering (FATF) is expected to issue guidelines in June this year. The United States Government has prepared several proposed frameworks for publication.
There are still many highlights in the cryptocurrency circle the next half year. Looking around, we can see the positive mood very clearly among many investors and experts, which makes us full of expectations for the future of the cryptocurrency circle, but never ignore the existence of risks.