Is There a Future for Cryptocurrency?
Is There a Future for Cryptocurrency?

Is There a Future for Cryptocurrency?

Many people are concerned about technology’s ability to upset the current financial system. Prof. Joseph A. Grundfest, a Stanford Law School professor, recently sat down to talk about the present state of cryptocurrencies. We saw the blunders and the prospects for this technology in the future. Professor Grundfest, a former SEC commissioner and specialist on financial systems, has a unique perspective on the future of bitcoin. 

Regulating Cryptocurrencies

The debate over cryptocurrency regulation is sure to continue. Legislators worldwide are attempting to find out how to make bitcoin safer for investors and less enticing to thieves. There are types of Bitcoin wallet that are safe to use, but not all of them are that safe. Earlier this year, China stated that all cryptocurrency transactions were banned, ending any crypto-related operations within Chinese territory. We don’t know just what we’re dealing with here. 

Gensler previously stated that if they do not implement stricter regulation, investors are “certain to be damaged.” The IRS is concerned about how virtual money is reported on tax returns to make matters even more complicated. U.S. officials like Vice President Joe Biden and Senator Chuck Grassley have recently expressed a growing belief that greater bitcoin regulation is necessary.

Investing in a New Regulatory Regime

The $1.2 trillion bipartisan infrastructure plan approved by President Trump in November includes crypto tax reporting measures that might make it simpler for the IRS to trace crypto activity among American citizens. According to experts, cryptocurrency investors should keep track of their earnings and losses even before the new regulation comes into effect. 

Cryptocurrency exchanges will have to provide investors with 1099-B tax forms that include their cost basis information, according to Shehan Chandrasekera, CPA, head of a tax strategy at CoinTracker.io, a crypto tax software startup. As a result, “the crypto tax filing burden will be reduced dramatically.” In unpredictable markets, regulatory statements might impact the price of cryptocurrencies. There are several benefits to implementing sensible regulations, says Ben Weiss of CoinFlip, a cryptocurrency purchasing platform, and crypto ATM network.

Approval of the Crypto ETF

Traditional investment brokerages like Fidelity or Vanguard, such as the BITO Bitcoin ETF, allow investors to buy directly into cryptocurrencies. The fund instead has Bitcoin futures contracts. According to analysts, Bitcoin futures may or may not reflect the actual price of Bitcoin in its current form. Because there isn’t yet an ETF that owns Bitcoin itself, investors will have to wait for a little longer. Since at least 2009, the SEC has considered approving ETFs, but BITO is the first to be given the green light.

Blockchain and Crypto Talents in High Demand

Blockchain and crypto talents will be in high demand in 2022. Demand for these talents has risen due to the industry’s development potential and the technology’s growing domination in various areas. The increasing demand for blockchain specialists directly results from the favorable economics of blockchain technology and the burgeoning expansion of the crypto markets. One of the most sought-after talents for 2021 and beyond, according to LinkedIn research, is blockchain expertise. Because of this, businesses need blockchain experts who can help them make the most of blockchain technology to achieve their goals.

The Metaverse and Blockchain

In 2002, blockchain applications in the Metaverse rose to the top of the list of top blockchain trends. The Metaverse would’ve been incomplete without blockchain technology, as everything would be kept in a single networked location. As a result of blockchain, there will be a new generation of social networks that might be even more powerful and superior than the current social media giants such as Facebook, Instagram, Twitter, and YouTube. 

In 2022, blockchain operates numerous platforms on the Metaverse with NFTs. Cryptocurrencies on the Metaverse platform. With its 192 million daily active users on Twitter, the social media company plans to integrate cryptocurrencies into the site with features like Bitcoin tipping for content providers.

Libra: Not What It Seems

Facebook’s foray into the cryptocurrency world, Libra, has been hailed as a solution to a range of financial woes in some circles. The platform, in particular, was meant to expedite international payments and remove superfluous transaction expenses and taxes. Despite Professor Grundfest’s admiration for the aim, he feels that the strategy employed to achieve it is seriously wrong. When cutting down on transactions, he does not believe that another cryptocurrency is the answer. Instead, Professor Grundfest contends that Facebook’s bank, which might serve as a key financial institution for its customers, would have been a superior strategy.

 As a result, the corporation missed an opportunity to meet regulatory requirements while also reducing costs by focusing on developing regionally-specific banking systems. To link them all together in a global network would be logical after being formed and public confidence established.

Last Words

My prediction is that in 2022, the crypto platforms that maintain comprehensive compliance & risk management systems will be successful and flourish. Regulators will continue to focus on risk management, compliance, and cybersecurity next year, as they strive to keep bitcoin as safe and secure as possible in their countries.’ However, I’m looking forward to what the future holds for crypto in 2022.



Share via
Copy link
Powered by Social Snap