It’s been a rather big year for crypto thus far, but what will the future bring? Many analysts are weighing in where bitcoin and its altcoin cousins will be standing in the next five to ten years.
Where Will Crypto Be in the Next Few Years?
Dave Abner – head of global development at Gemini – said in a statement:
There’s tremendous focus and attention being paid to [the crypto industry].
One of the big focuses we have been seeing over the past few months is on regulation. Countries around the world are looking to make cryptocurrency investing safe for individuals by cutting out cyberthieves and other malicious actors. Jeffrey Wang – head of the Americas at Amber Group – is convinced that regulation of the crypto space is going to be extremely big in the coming years. He says:
Regulation is probably one of the biggest overhangs in the crypto industry globally. We would very much welcome clear regulation. There are different agencies that may or may not have jurisdiction to oversee everything, and it differs state by state.
Thus far, we have seen U.S. regulators work to implement stricter tax reporting laws for those investing in crypto. Anyone who engages in a transaction exceeding $10,000 must report it to the IRS. In addition, members of Congress are also working on an infrastructure bill that contains verbiage relating to the further taxation of crypto traders. It is estimated that should the bill pass, representatives will be able to garner as much as $28 billion from these individuals.
In addition, China has sought to remove all mining from its territory, saying that the process is damaging to Earth’s atmosphere.
For the most part, there are several analysts and financial heads out there that think regulation will ultimately help the crypto space in the future. Ben Weiss – CEO and cofounder of Coin Flip – mentioned in an interview:
Sensible regulation is a win for everyone. It gives people more confidence in crypto, but I think it’s something we have to take our time on, and we have to get it right.
One of the other big arguments is whether a crypto-based exchange-traded fund (ETF) will finally show up in the United States. Companies have been trying to get their applications approved for years, only to come up short each time. SEC chairman Gary Gensler has stated he is willing to allow a crypto ETF granted it is based on futures. He states:
We do it in the equity market, we do it in the bond markets, people might want it here.
Is an ETF Coming?
Abner says he hopes things change soon considering he was looking forward to a bitcoin ETF prior to the year 2021. He says:
There’s obviously a lot of people looking at it with the other regulation that is being introduced. That could potentially slow things down, but I think there’s still a possibility.
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