Though we’ve seen Bitcoin recover a bit in mid $6,000, it is still quite far from its all-time high. And part of the reason for this is that regulations have slowed down cryptocurrencies. However, it isn’t all bad. Now, slowly there is regulatory clarity in the market.
In fact, many believe that regulatory clarity is what the crypto market needs in order to get the boost that it needs. There are crypto experts who believe that institutional investors are simply waiting for the right time when the crypto market is regulated before they can get involved.
If you will ask three major American economists: Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini, all of them made a statement that Bitcoin will eventually fail as a currency. They criticized Bitcoin mainly because of the absence of its intrinsic value and its price volatility.
Stiglitz is a Nobel Prize-winning economist and a professor at Columbia University. He criticized Bitcoin mainly because of its anonymity. He said that it contradicts the idea of creating a “transparent banking system”. He also mentioned that Bitcoin allows “nefarious activities”. Stiglitz claims that financial regulators haven’t really acted on the crypto market yet saying that it is still relatively small.
He believes that “Once it (the cryptocurrency market) becomes significant they will use the hammer”.
Rogoff, on the other hand, was the former chief economist at the International Monetary Fund (IMF) and also a Harvard University Professor, mentioned thinks that Bitcoin is going to go as low as $100 in the next ten years.
As for Roubini, who is the NYU economist who allegedly predicted the 2008 financial crisis, he believes that Bitcoin doesn’t fulfill any of the characteristics of money. That is despite the recent study that claims Bitcoin and other cryptocurrencies as the next evolutionary step for money.
Are Regulations Bad or Good?
Do regulations really signal a bad thing for the cryptocurrency market? Since the start of 2018, cryptocurrencies were bearish mainly because of regulatory concerns. However, there are those who believe that this is a necessity in order for the crypto market to become bigger than ever.
The Central Bank of Korea also claims that cryptocurrencies do not pose any risk to the financial market. This is because of the fact that the volume isn’t really big. South Korea also agreed to implement unified G20 unified rules for cryptocurrencies.
There are also different forecasts when it comes to cryptocurrencies. Tom Lee updated his forecast recently saying that Bitcoin is going to be at $22,000 by the end of the year. And it doesn’t really end there. There are more outrageous predictions.
Kay Van-Petersen who works as an analyst for Saxo Bank believes that Bitcoin could reach $100,000 in 2018. Van-Petersen predicted in December 2016 that Bitcoin is going to reach $2,000 by 2017. He believes that the bearish trend in the crypto market today is simply a correction that is expected and “healthy”.
Though no one knows exactly the future of Bitcoin and cryptocurrencies, it is worth mentioning that countries are slowly adopting cryptocurrencies and are even putting laws that allow investors and businesses to have an idea how the industry should conduct itself.