Regulations in the cryptocurrency space have been a much-discussed issue, with many proponents and luminaries of the industry presenting different viewpoints on the topic. In a recent interview with Bloxlive, Tone Vays and Adam Back gave their perspective on present-day cryptocurrency regulations.
Tone Vays, a famous trader and Bitcoin bull, stated that the Bitcoin protocol was not regulatable. However, from a trading perspective, the industry does need regulating, he said. Vays added,
“Bitcoin will always have 21 million blocks and that is not going to be regulated. But now that I am in the space completely, I have realized that the space cannot regulate itself at all. Stuff that can be regulated will be regulated, I am not even sure that it is bad at this point.”
According to Vays, regulation is required and the government should step in, especially if the cryptocurrency space cannot handle itself. Tone Vays had earlier commented on the regulatory bill passed by the state of Texas, calling it ‘weird’. He commented,
“This entire bill is weird actually. On one hand, you have so-called socialist states like California promoting crypto while apparent anti-socialist states like Texas are banning Bitcoin and such transactions. Weird.”
Adam Back, the Founder of Blockstream, had a similar opinion, saying that with the issues currently in the market, regulation won’t be all that bad. He went on to say that internationally, people will trade different cryptocurrencies on different exchanges. According to him, some exchanges provide a stringent framework of rules and regulations, some are agile, while others work with a transitional system. In his words,
“The Malta blockchain framework is a good model for a lot of countries to work off of. Blockstream also works with a framework that is along the same lines. In my opinion, larger countries will have a backward mindset about regulations but smaller, more agile countries will be the ones setting the parameters.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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