Cryptocurrencies will explode (one way or another)
It's not just Bitcoin
The size of the global virtual currency market has now reached around US$700 billion. Bitcoin and other cryptocurrencies, neither issued nor backed by any national government, promise to reduce institutional intervention, offer a means of borderless, anonymous international transfers and, for some, the opportunity for investment in a new asset class. But they are also complex, volatile, prone to fraud, potentially high-risk and, at the same time, are becoming a mass market phenomenon – a fact that hasn’t escaped the attention of regulators.
- 2018 will be the year of global cryptocurrency regulation. Expect to see regulators forced out of sheer necessity to take a more active role in shaping cryptocurrency markets.
- Expect your taxi driver to have a view on Bitcoin: cryptocurrencies have captured widespread interest and credibility. This will continue, particularly as geopolitical uncertainty and high inflation fuels demand for alternative currencies.
- As gatekeepers for large sections of the investor population, cryptocurrency exchanges will become critical infrastructure providers and existing financial institutions will offer services in response to client demand for this new asset class.