Cryptocurrencies have seen a major rise in the financial market since their inception but the biggest problem associated with them still persists, they are not being used as actual currencies by their holders. People mostly buy cryptos just to sell them later on in order to gain fiat. Swen van Zanten, core member in the Verge currency team, is of the same view.
Talking to BlockPublisher regarding the matter of manipulation present in the market, Swen stated:
Everyone is trying to make fiat out of there crypto. Which is fine by me. Only way to stop that is people really use crypto as currencies instead of “crypto”. If you buy crypto now “you might loose it”… which isn’t true. The value compared to that fiat only changes.
People should start treating cryptos as currencies instead of just considering them means of gaining profits. Also, one of the major reason holding back the growth of the crypto is the lack of acceptance among the general public and the institutions. Acceptance of cryptocurrencies has not been very large-scale as of yet. Most of the people hold back from entering the market of cryptocurrencies owing the volatility that it presents forward. Volatility is one of the major reason why people do not trust cryptocurrencies that much. Manipulation is also one of the reasons why the credibility of the crypto market is marred so badly.
The United States Securities and Exchange Commission (SEC) has not been very approving of a crypto-linked exchange traded-fund (ETF) owing to such issues that are attached with this world. A lack of a crypto-linked ETF is one of the reasons why the acceptance of these digital currencies among the general public and institutional investors is so low. Once an ETF gets established, it will pave out new ways for the development this nascent market.
Thomas Power, who is the board member of 9 Spokes, also shares the view that a bitcoin exchange traded-fund will drive the crypto trust among the public. Talking to BlockPublisher, Thomas stated:
…without SEC ETF BTC approval, crypto won’t ever be fully trusted.
There are two issues at hand for the crypto market. First, the general public needs to accept in the possibilities that cryptocurrencies provide and enter this market. Second, instead of just using cryptos to gain profits in fiat, people should start considering them as actual currencies. But as there are a plethora of issues associated with the crypto market as now, general acceptance does not seem in sight unless they are resolved.