I think you are correct there needs to be some sort of regulations for mass adoption. I do hope this doesn't take away from the possibilities that crypto can create. It would be nice if the world could get together and work on some regulations together but given we are still out on climate change and ozone emissions I think the likelihood is low.
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Regulations will only regulate the flow from fiat to crypto and back while closing down obvious scams. The huge potential behind cryptos will not be affected in my opinion.