Crypto regulation obstacles in 2021
Tuesday, January 19, 2021
Austin Harris |
Dave Hodgson, Chief Investment Officer at NEM Group predicts that in 2021 BTC will be liquidity seeking shelter if the US inflation continues, crypto regulation obstacles in 2021 could fail and cause consumers to move around them, and Ethereum will continue to see adoption.
Ethereum is of course a project to watch but seems to be suffering from project fatigue with increasing numbers speaking to other chains due I suspect, to uncertainty on ETH2.0 dates and scaling timescales. Once they sort out those issues, they will undoubtedly continue to see adoption outside the DeFi spikes we have seen in Q3 2020.
In 2020, we have already seen crypto being adopted in increasing volumes, by now most of the major private financial institutions and a variety of PLCs have stated they are holding Bitcoin on their balance sheets. Grayscale continues to grow incredibly quickly, which offers primarily nondirect exposure for institutional investment. If the US continues to expand "quantitative easing"...or...inflation, unabated, it seems like a sensible, even conservative, fiscal choice to diversify and BTC would be one of those natural homes for liquidity seeking shelter.
Crypto regulation obstacles in 2021
One obstacle going into 2021 is regulations that remain inconsistent and often unclear across national boundaries. Additionally, a few nation-states are trying to regulate against space, such as the UK with its recent anti derivatives moves. Ultimately, those kinds of regulations will fail and consumers will move around being told what they can and can’t do with their finances. While there are some regulatory steps moving in the right direction, this remains a hurdle to the growth of the space. In my view the faster we move towards not having the government in our money, the better off society will be as a whole.
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