There are different measures that are being put in place in a bid to regulate crypto. These measures have been put in place to deal with the increasing number of cyber-crimes that are being reported. John McAfee, who is a well-recognized security expert and an early adopter of cryptocurrency, believes that through regulation crypto will be forced to go underground.
According to him:
“The US Government, either by accident or by design, is destroying the digital currency marketplace or in the process will eventually force them to go underground.” “So cryptocurrencies may in fact become the currency of choice for criminals worldwide,” he said. “That would be ironic indeed.” He added it was not clear whether cryptocurrencies were actually useful for any purpose except buying drugs on ‘the darknet’.
These security concerns are mainly attributable to the fact that crypto is not regulated. With the regulations coming into effect, some crypto enthusiasts fear that this may mark the end of crypto. “It is not the regulation itself that will kill Ethereum but rather the way these regulations are enforced,” said Chris Burniske, an analyst and blockchain products lead at ARK Invest, in New York. “A firewall is only effective when it is well monitored and supported by human capital – something that requires massive investment on a continual basis.” Volatility in Crypto Market
I know many people who are bullish on crypto currency as well as many people who have taken bearish stand. Trading on the Bitcoin System app gives you an opportunity to make the most with crypto. But there is one thing that everybody agrees upon – volatility of this market. So let’s talk about it first.
Now, cryptocurrency is quite a volatile market, and this is because there are very few people actually buying crypto currencies as a real investment. Bitcoin, the first coin on the market, made its first purchase only back in 2010. Since then it has experienced massive rises and falls in value, with some stops along the way.
As you can see from above graph , value of crypto currency fluctuate heavily but still we cannot ignore fact that currency like Bitcoin hit over the 60,000$ mark which indicate that any digital asset or commodity have potentials to become valuable . But make no mistake if volatility will continue then this market will fall apart because people not ready for big swings in price and therefore they won’t buy/sell their crypto assets.
Way Forward With Crypto
It is clear that some regulation and legal framework are needed to make crypto market viable. Cryptocurrency exchanges have been involved in a lot of scandals these days, which make the investors lose their confidence in dealing with such entities.
There are few biggest issues with exchanges. A major problem for crypto trading is anonymity. That’s because most of the established cryptocurrency sites and exchanges do not follow Know Your Customer and Anti-Money Laundering laws/rules.
So what exactly does this mean? In simple terms, it means an individual can use Bitcoin or other cryptocurrencies to hide his identity while transferring money, also known as “Bitcoin laundering.” It may seem harmless but this could be prevented through KYC.
In addition to this, to comply with regulations that are imposed by watchdogs globally is very expensive. So how the cryptocurrency exchanges will be able to avoid such issues and make billions of dollars?
Investigations hint that keeping records and maintaining a database for every transaction carried out in Bitcoin or any other digital currency could cost billions of dollars (not including hardware). It’s still unclear if the crypto regulation can bring down the market but it is definite there will be quite some impact.