The world of blockchain and cryptos is exploding at a very rapid pace right now. Developments are being made in order to make it more mainstream in the financial workflow of the world. But is the ecosystem of cryptos safe? Owing to the lack of regulations, this space has become rife with illegal activities and scams. What can governments do in order to make this space free from its negativities?
The Chief Executive Officer of CoolBitX, a blockchain security company, Michael Ou, recently shared his opinions regarding the world of bitcoin and cryptos as he discussed different aspects such as government regulation. The following Q&A shows the opinions and views put forward by Michael in detail..
- Will bitcoin replace fiat or act as a reserve currency in the future?
Michael: “In my opinion, bitcoin will not replace fiat nor act as a reserve currency in the future. Instead, bitcoin will become a hot investment choice for our generation. Silent Generation bought gold, Boomers bought equities, Gen X liked Hedge funds, and Virtual assets is the investment choice of the current generation.”
- Is it the digital gold?
Michael: “Bitcoin is a new financial product that has characteristics of limited amount, global access, 24-7 open market, and it is purely digital. We did not have this type of financial product before, which is why It ought to have its own category: virtual assets. This asset class in the near future will be available for investment in mainstream institutions like banks. In the beginning, banks only offered deposits, withdraws and loans. Later, banks started to offer a variety types of financial products, such as insurance, savings, gold, and ETFs. When these financial products are being offered by banks, they could reach billions of users and become popular – because banks are where the majority of the world store their wealth, and they are the first gateway to any investment. The day virtual assets are offered by banks, is the day that we enter mainstream adoption.”
- Should this market be regulated?
Michael: “Without any hesitation, my answer is ‘definitely yes.’ Within the circle where bitcoin addresses and transactions are AML compliant, bitcoin will become a healthy type of financial product, where authorities are capable of catching the people behind market price manipulations. That said, bitcoin price would no longer be controlled by small group of people, but rather, becoming a fair investment choice.”
- What can governments do to curb out the negative elements linked with bitcoin?
Michael: “To my perspective, governments need to adopt technologies that can help build AML/KYC compliant of bitcoin and other digital assets. Governments might even need to acquire these companies who offer reg tech for digital assets to ensure the legitimacy of the industry.”
The bitcoin world overall is still in its early stages. It will be interesting to see how things turn out as we move into 2019.
