Acceptance and volatility: are they related?

Governments and institutions around the world are paying increasing attention to cryptocurrencies (CC) and the technology that underpins them all: Blockchain. Some of the attention is negative, but in general, it is clear that more and more attention is positive, supportive and exploitative. As the business and investment world becomes more aware of having a disruptive force in its midst, it becomes imperative to examine business processes on this new frontier and compare them to the relatively old, time-consuming, and expensive processes they now have. New technologies need new investment capital to grow, and with that growth comes streaks, false starts and controversies.

Developments in the world of CC and Blockchain are happening fast and furious as governments and institutions strive to harness technology, tax all profits, protect their investments, and protect their constituents and customers, an act. of complex balance that goes a long way. by explaining why many seem to go in different directions and change direction frequently. Here are some of the latest developments that serve to illustrate that CC and Blockchain are gradually becoming accepted into the mainstream, but still grappling with regulation, control, and stability:

  • Uzbekistan will publish its plans to regulate Bitcoin in September 2018, with a Blockchain “skills center” starting operations in July.
  • Kazakhstan has stated its desire to copy the permissiveness of Singapore’s Blockchain.
  • Belarus has announced that it wants to create a hospitable environment for Blockchain, as an innovative financial transaction technology.
  • Venezuela has created the “PETRO”, a CC created to raise cash as Venezuela approaches economic collapse. The hope is that it is a way to avoid sanctions that prevent Venezuela from raising money in the global bond markets. President Nicol├ís Maduro claims that PETRO raised $ 735 million on its first day, a claim that has not been substantiated. Maduro sees PETRO as “the perfect kryptonite to defeat SUPERMAN”, his analogy of the sanctions imposed by the United States, thinking that this currency frees his country from the clutches of banks and governments. Perhaps you do not see that PETRO was started by a government, yours.
  • TD Canada Trust has become the first Canadian bank to join some UK and US banks in banning the use of credit cards to buy CC.
  • South Korea is heading towards legalizing Bitcoin, indicating that it will view Bitcoin as a liquid asset. Since South Korea is at the forefront of the DC market, the impact of its decisions will be significant and global. Japan has already taken those steps, making Bitcoin operations more transparent, more regulated, and 100% legal.
  • BlackRock, the world’s largest investment company, continues its bullish forecast for CC, saying it sees “wider use” in the future.
  • Romeo Lacher, chairman of the Swiss stock exchange, believes that launching a crypto version of the Swiss franc has many advantages, and his organization would support it, adding that he “does not like cash.”
  • China’s largest brick and mortar and online retailer has announced the first four startups for its Al Catapult Blockchain incubation program. The Beijing-based program, which has seen candidates from as far away as Australia and the United Kingdom, aims to use the company’s vast Chinese infrastructure to develop new Blockchain and artificial intelligence applications.

With all the global activity going back and forth, it is clear that Blockchain is the disruptive technology of this age, and CCs are just one facet of the possibilities enabled. Much like the internet investment explosion of the 90s, Blockchain and CC investments will have winners and losers, however we don’t want this to turn into the huge bubble that burst destructively with many early DOT COM investments. back in the 90s. What we want to see is a well reasoned approach to Blockchain developments and investments.

Volatility will remain the norm in this market space for some time to come as we see increasing acceptance, innovation and regulation. Failures and successes will ensue, leading governments, institutions, investors and innovators to continually adjust their processes and thinking. Volatility is normal and healthy at this stage.

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