There is no doubt that cryptocurrency is a word that elicits a very strong response these days. On one hand, Team Crypto heralds the arena as the next big thing as they speak in blue sky terms about the future of this new form of currency that takes digital shape and is beyond restriction. In direct opposition is Team Tradition that warns of the perils of decentralization and fraud around pure digital currency. Indeed, there was nothing short of a frenzy around trading on the CBOE bitcoin futures a few days ago, while the day after reports detailed a large digital heist surrounding Ethereum. Doomsday sentiment around this new area of tech convergence with that of the financial spectrum is plentiful. Just why is there so much fear around the area of cryptocurrency, and what will 2018 mean for this pioneering area, particularly as we move to a general cashless society that is easily driven and adopted by the massive Millennial demographic?
To answer this question, it's best to turn to those well-entrenched in the crypto area on a day-to-day basis. The following are real-time insights from a number of crypto executives as they see reasons behind the fears as well as key predictions for 2018 so that you can be prepared:
Konstantinos Karagiannis, Chief Technology Officer, Security Consulting Practice, BT Americas on why there is so much fear around crypto:
There’s fear on two sides: financial and technical.
Financial is mostly that it’s a bubble. Every time Bitcoin pulls back in price, someone says it’s a bubble.
Technical is that coins will be: lost, stolen/hacked, or just plain frauds (as is the case with some ICOs).
His top three trends in this space for 2018:
Fraud. We’re not done with scams like ICOs that are not real, or sites that will get you into a 'pool' of some sorts for a set fee.
Creative theft in the real world. Someone was just kidnapped to try and get their coins. This could get worse.
Hacking, of course. A lot of exchanges still make basic security mistakes. Ethical hacking needed here!
John Monarch, CEO of ShipChain, a blockchain based logistics software company, on why there is so much fear around crypto:
It's a new asset class that has taken the world by storm since Bitcoin first hit the scene. The volatility in the market often is what leads to the fear, but the excitement around the tech itself is outpacing that. I'd say most people actually involved are more happy about the evolution of cryptocurrencies and blockchain than they are fearful.
His top three major trends in this space for 2018:
Regulation. Governments will jump in and try to process very old securities laws, for instance from 1933 in the United States, and apply it to cryptocurrencies, or create new legal asset classes entirely. Many people see this as crypto 'growing up', though many of the purists don't like it. This includes the ICO market, which the SEC recently issued some guidance on as well.
Legacy companies entering the scene. You'll see an increase in crypto payment acceptance from larger companies. Overstock took a leap and did it. Many are rumoring and hoping that Amazon and eBay will soon enough as well. Most of these companies will be happy if they are able to immediately liquidate to fiat currencies, which with higher volume in the market will allow for that.
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Reasonable things to worry about!
Thanks for helping keep things in perspective. :)