In The Background
There are a lot of discussions around at the moment looking at whether Cryptocurrencies will still be here in a few years, especially with the current state of the financial and exchange markets. However, there are a few signs out there that could suggest that the digital economy is here to stay including a major fact that the USA’s Securities and Exchange Commission (SEC) is holding off a decision on the trading of SolidX Bitcoin Shares ETF. This is a clear sign that SEC is willing to take serious consideration over the future of Cryptocurrencies before making a final decision. This can only be a positive.
The USA Regulations
Regulation is the new buzz word in the world of Cryptocurrencies. Everyone is crying out for it. Some countries are actually in the midst of writing their regulations as we speak to secure their finances and ensure there is as little a risk as possible with the new digital economy. Those that are working on their regulations are trying to balance the need for legality whilst at the same time ensuring that the industry can grow i.e. ensure that the new generation of finance is not be restricted in its development simply because of the law.
The US dollar is still very much the top worldwide fiat currency so many are looking to the US to be the leader in providing the framework to move forward with their own regulations. A lot of investors, companies and individuals around the world are already risking being involved in Cryptocurrencies without the regulation. However regulation is only just starting to come to the front of everyone’s minds now. So it is a totally new concept for most. But it is a lot simpler said than done considering how sophisticated the digital economy is. Like nothing seen before. There will be times that the regulations will fall over but it is simply a case of a quick brush off and getting back on the horse. The USA will produce the necessary regulations – given the necessary time – that will provide a comprehensive system for those in the country and other countries to follow if they feel the need.
Scaling The Technology
At the moment, there are still scalability challenges with Cryptocurrencies but these are being addressed with new technology being developed right now. With the Lightning Network and Plasma in production at the moment for Bitcoin and Ethereum respectively, it won’t be long before transactions are quicker and more efficient. And with this, there is sure to follow more new innovations and apps to raise public interest again. And as is the current trend, these will no doubt see the middle man being removed from the equation. And as a result of this, transactions and processes all become more cost effective and quicker too. Its a win win situation for all concerned.
Things are definitely on the move in the right direction and with almost daily news pieces covering regulation, the gap in the industry will soon be filled.