Do you remember when the financially illiterate, and even some savvy investors, said Bitcoin was just for young guys who didn’t want to go to work? They charged Bitcoin was for mainly unemployed men who just sat around on the sofa playing video games.
Many laughed at crypto players and worst. However, 10 and a half years later, not only have these naysayers stopped criticizing cryptos and their traders and investors, they’ve joined them.
Many trends were set in motion over the past decade that acted as catalysts to move crypto prices higher, especially Bitcoin. Now the space is facing and embracing new trends.
Institutional Investors Will Continue to Warm to Cryptos
Institutional investors gradually, but steadily, are dipping their toes into the crypto space’s waters, helping to boost the confidence for many who were hesitant about the space.
More institutional investors have warmed to Bitcoin and other cryptos over the years. That’s what so many crypto players had craved over the years since Bitcoin’s inception. Now that you have big names and companies piling into cryptos and not bashing them, we’ve seen crypto prices rise.
In November 2020, Bitcoin surged to set a first fresh record in nearly three years. As noted by The Wall Street Journal, this surge was driven by a wave of new investors whose interests were piqued by the huge returns that were being seen in the space.
Glassnode is a Blockchain data and intelligence provider that boasts being able to generate on-chain metrics and tools for digital asset stakeholders. Its founders – Jan Happel and Jann Allemann said in a tweet during late May 202 that they saw a spike in outgoing OTC transactions.
The tweet stated:
“Whatever bitcoin lows we will see this summer, they won’t be for long. Might as well hold through.”
During the spring of 2021, Gemini, the cryptocurrency exchange founded by the Tyler and Cameron Winklevoss published a State of Crypto report for 2021. It found
In the introductory section, Gemini notes that the arrival of institutions, including PayPal.
Also, the Ascent, a Motley Fool service, found that over 20% of American adults that have never owned cryptocurrency – more than 50 million Americans — are likely to buy crypto in the next year.
Risk Assessment Models Will Improve
According to BitAML, risk assessment models are meant to detail:
- the riskiness of the crypto
- when you should exit that crypto
- any continuing risks to be aware of even if you do everything you can to protect yourself.
Risk assessment models are expected to improve, noted Fintech Futures. The digital publishing platform has stated that this trend could contribute to cryptocurrency prices move higher.
At META 1, officials understood how the risks of cryptos were hindrances for many people.
They addressed this by creating the META 1 Coin Trust. It places gold assets in low-risk high-yield trading platforms that can produce a monthly cash flow. This cash flow will be integrated with META 1 Coin via the Appreciation Smart Contract, the outfit explains in its white paper. META 1 Coin utilizes smart contracts to ensure all aspects of operations are executed properly. Their smart contracts are logical processing elements that assign and verify assets on the META 1 Blockchain.
“Against the background of the rise in the value of bitcoin, there is an urgent need for the emergence of a high-quality risk assessment model, since it is increasingly difficult for users to objectively assess the possible result of crypto investments, without succumbing to the general rush. Services that offer a working solution, and not just “digital fortune-telling on the coffee grounds”, will be able to quickly conquer the hearts, minds and wallets of both — beginners and experienced participants in the cryptocurrency market.” –Fintech Futures
Government Regulation of Cryptos Could Pick Up
Many crypto players have railed at any regulations of the deregulated space. However, just as many seem to have acknowledged that some regulations may be needed. The main reason stems from the unscrupulous bad actors who prey on novices crypto investors.
At the beginning of June, crypto observers in had pegged volatility to regulations that could hurt cryptos. Much of the current volatility in crypto is due to regulators worldwide making moves that could make cryptos less attractive.
For example, in the spring (May) of 2021, the Treasury Department released a report called the “American Families Plan” as proposed by Biden. The premise is that those in the top end of the income distribution can avoid by taxes by investing in cryptos.
The Securities and Exchange Commission (SEC) is reportedly working on regulations aimed to protect retail investors. Then there is U.S. President Biden’s plan to revamp the U.S. tax code. The plan would snare crypto investors by nearly doubling taxes on their capital gains on their crypto earnings.
The Federal Deposit Insurance Corporation [FDIC] has requested information about how banks are using digital assets. The FDIC deemed its move as a call l for “current and potential digital asset use cases” at insured institutions.
And last, but not least, is the Chinese government. It continues to be anti-crypto, with plans to take a more active role in regulating cryptocurrencies in the near future. Whether its moves will be mitigating factors for cryptos’ prices moving higher remains to be seen. Prior moves, such as cracking down on crypto exchanges didn’t stop Bitcoin’s stump to its historic price high of $63,729.50
META 1 prides itself on having created a comprehensive solution for a free crypto economy that cannot be regulated or stiffed by the world’s governmental bodies.
Officials state that by creating META 1 and what they call METANOMICS there is now a platform for Free Humans to transact without interference. They refer to METANOMICS as a
“…dynamic ecosphere of a private appreciating stable coin META 1 Coin, designed to be a replacement for sovereign currency, a private decentralized exchange META Exchange designed to be a platform for free, unencumbered commerce, a private bank, META Investment bank that is free from the grasp of the Central Banks and a legal education arm Universal Law that offers asset protection and empowers humans to liberate themselves from the corrupt system and returns their legal status back to that of a Free Human.”
Despite the headwinds cryptos face, the space has been resilient by gaining more trust among traders and investors. Many outfits, like META 1 have taken many steps to earn trust. As noted above, structuring palatable smart contracts is one way to become reputable.
Poising themselves as reputable players is essential for the crypto space to continue to draw interest and thrive.