In this article, we will try to understand why the oversight of cryptocurrency is being tightened. Could something push Bitcoin out of its place? What format will it take if it never becomes a fast retail means of payment?
Why is the tightening of cryptocurrency oversight growing?
Financial sector governments are poised to significantly step up their efforts to regulate the fast-growing cryptocurrency sector. In May 2021, US and German regulators became interested in the fast-growing cryptocurrency market. Since then, the leaders of the cryptocurrency industry and experts in the field of securities law have been closely watching the struggle between the German regulator BaFin and the cryptocurrency exchange Binance.
Binance is one of the world’s largest crypto companies; they asked BaFin to drop the securities law charge. This is due to the emergence of new “tokens” designed to simulate the accumulation of American stocks. However, the request was rejected.
Fears are sparking strict sentiment in Washington. According to rumors, key US financial regulators are unhappy with the participation of cryptocurrency operators in tightly controlled public markets.
Digital tokens are gaining more and more attention. Coinbase Global Inc. cryptocurrency exchange report on the Nasdaq bears witness to this. The rise in the price of Bitcoin several times over the past 12 months will be referred to here. Crypto firms are joining the ranks to shape the emerging regulatory environment and fight the continuing distrust of digital tokens.
Governments are taking a closer look at the risks of the cryptocurrency sector due to the growing number of investors. Bitcoin’s most raging supporters see it as a modern store of value and a hedge against inflation, while others see it as a speculative bubble.
Bitcoin euphoria peaked earlier this week ahead of Coinbase’s highly anticipated direct listing. As a result, the largest digital currency hit an all-time high of nearly $ 65,000. The price then declined as it dropped after Wednesday’s debut.
Could something push Bitcoin aside?
The beginning of June gave traders a lot of good and bad news at the same time. The US Securities and Exchange Commission (SEC) has postponed its decision on WisdonTree’s Bitcoin ETF application. Plus, back in late April, the SEC postponed its decision on VanEck’s Bitcoin ETF filing until June.
A delay in Bitcoin ETF approval could force traders to look for other sources of asset growth. This is bad for large cryptocurrencies. Altcoins remain a win. While there is an outflow from Bitcoin, investors are focusing on Cardano, Polkadot, and XRP.
Polkadot deserves special attention. Large venture capital companies and funds are actively interested in this token. Recently, Asian private venture capital firm Master Ventures launched a $ 30 million fund for crypto projects targeting a parachain slot on Polkadot.
“We believe Polkadot will be one of the clear long-term winning blockchains and ecosystems due to its cross-chain functionality, ease of development and deployment, and the strength of its developer community,” said Master Ventures CEO Kyle Chass.
Polkadot has its system for making updates to the chain. That being said, Polkadot runs on an extremely simple basic protocol that will remain unchanged. Changes will occur at a higher level than base, and this should protect Polkadot as a whole from accidental or unexpected forks.
Bitcoin is with us forever, but more like a blockchain than a retail currency
Bitcoin is a highly volatile asset. It has struggled since hitting a record $ 64,895.22 in mid-April when it fell to a $ 47,000 threshold just 11 days later and then hovered around $ 58,000 since early May. Does this fluctuation mean bitcoin is dying? We think not.
Many people see Bitcoin as a good store of value anyway, as its supply is limited. However, BTS is still inconvenient as a means of payment. Slow transaction speed and a bad reputation for fraudulent behavior are the reasons for this.
However, the technology associated with Bitcoin is immortal. Blockchain and distributed ledger technology are already used by many industries and large companies. Let Bitcoin not become the mainstream means of payment. In any case, it is driving the creation of fast and convenient cryptocurrencies that will be the future of the industry.
Bitcoin may fall, but many reputable investors are in no hurry to sell it. Elon Musk pointed on Twitter that Tesla has been holding bitcoins for a long time and will not sell its position. Ark Invest founder Katie Wood, an active cryptocurrency investor, also expresses her full support.
“The reality is that we are seeing a constant influx of institutional players and investors into this space. This process is unlikely to slow down anytime soon,” said Anri Arslanyan, head of the cryptocurrency department at the PwC consulting company.
We’ve already seen bitcoin rise and fall, and then fall and rise again. This suggests that this cryptocurrency is a long-term investment. Bitcoin is mostly in a bear market right now, but there are always periods of ups and downs. And the faster economic growth has taken place, the higher the likelihood of a fall. And lately, thanks to the economic turmoil after the pandemic and public support, bitcoin has indeed achieved record growth for itself.