The acceptance of cryptocurrencies has not been very widespread among the general public. The instability, volatility and manipulation that the cryptocurrencies provide keep people on the back foot regarding their entry into the crypto market. As of yet, the acceptance of cryptos is not very common in the masses.
Talking to BlockPublisher regarding this scenario among the general public, the board member of 9 Spokes and a blockchain influencer, Thomas Power stated:
The global economic crash of 2020-2022 will drive crypto trust.
It is being speculated by some that the U.S. financial market is headed towards an economic crash around 2020. Thomas is of the view that it is the crash that will increase the acceptance of cryptos in the public. Adding on to his statements, Thomas stated:
Crashes make markets. Crashes create new asset classes like cryptos. Crypto is a new payment mechanism for people’s attention.
The lack of acceptance by the general public can be attributed to various factors. Lack a regulatory framework and lack of a crypto-linked exchange traded-fund (ETF) are some of the reasons why people are holding people back from trusting this area of play. One day, the prices of cryptos see a sudden increase, and the very next day, people witness them dropping down by a huge amount. Investors hold themselves back from accepting a market that provides such instability in its operation. Besides, the market is also prone of manipulation by big whales as of now. It is one of the reasons why a crypto-linked exchange traded fund is not getting an approval from the regulatory body in charge, the United States Securities and Exchange Commission. Regarding its concern of manipulation present in the crypto world, the SEC has stated that:
The Commission has also discussed concerns relating to the risk of fraud and manipulation in cryptocurrency markets in orders denying exchange proposals to list the shares of commodity trusts that would hold cryptocurrency. In addition, a number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.
The possibilities that digital currencies provides cannot be denied at all. Cryptocurrencies transcend the boundaries presented forward by fiat currencies and open up new horizons of financial freedom to the world. Although the potential provided by cryptocurrencies is not fully realized as of yet, it surely seems that they will play a crucial role in the financial markets of the future, be it post-crash 2020-2022.