Although Bitcoin is the most recognized digital asset, it is only one of many asset classes that develop financial services worldwide. Although change is inevitable, the scale and scope of change are not. For the financial industry, blockchain technology that supports Bitcoin (BTC), Ether (ETH), non-fungible tokens (NFT) and other digital assets has brought us to a crossroads.
The Mature Digital Asset Industry is here.
In the past 10 years, regulators have been conducting supervision at the forefront of cryptocurrency and at the same time allowing investors to invest in this exciting new financial field. Moreover, the experience gained in the cryptocurrency market helps to understand the future direction of development. In this historical period, there are countless possible outcomes, but one thing is sure: the efficacy and innovation of technology will far exceed the influence of the traditional financial sector.
Blockchain provides a faster, more effective, and safer structure for financial transactions than the current contracts, transactions, and records that define our economic, legal, and political systems. In the digital world, the way to supervise and maintain administrative control will have to change.
Continuously updated technology has brought us new ways to complete financial transactions. Satoshi Nakamoto began the blockchain upheaval in 2008. These days, monetary goliaths presently don’t sit around. 55 of the world’s 100 largest banks have been exposed to this new technology in some form. The success of any financial market is inseparable from predictability, security and general market efficiency. Therefore, regulators are considering the feasibility of participating in cryptocurrencies.
Will Regulation Adapt to Cryptocurrency?
Regulators and companies expect investors to enjoy protection in any market. Without supervision, market participants will face long-term and short-term risks. Regulators also ensure that the market follows a set of equal rules. As the Commissioner of the Commodity Futures Trading Commission (CFTC) Dan Berkovitz pointed out in June, letting an unregulated and unlicensed derivatives market compete side by side with a fully regulated and licensed derivatives market is untenable.
Moreover, it mustn’t be only regulators and governments that determine the future, but investors, leaders and ordinary consumers determine how to use digital assets in the future.
This Industry is Bigger than any token.
Over the years, more and more customers have been attracted by valuable assets and can solve complex problems. Different digital currencies have different use cases. For example, Tether (USDT) can pay wages well because it is pegged to the U.S. dollar, thus avoiding Bitcoin fluctuations. Brave’s Basic Attention Token (BAT) is setting a course for the future of online content by paying its browser users to view ads with BAT. These users can then use the BAT in their digital wallets to pay tips to anyone on the Internet.
Blockchain is tied in with taking care of issues, not assuming control over the world and supplanting legitimate monetary forms or banks. Unfortunately, this is a common misunderstanding among the public.
So What will the Future Look Like?
Investors, digital asset exchanges, intelligent technology experts, government officials, regulators, and everyone in between will benefit from a more mature market that protects its consumers and values transparency and predictability communicate honestly. Similarly, most people benefit from knowing which digital assets have real value and as manipulation tools to make the rich richer. Of course, the market has been there since the beginning, and traders have seen the ebb and flow of the trend. But we should also realize that what survives, in the end, is always a brilliant idea to solve the urgent problems of our time.