Regulations will be good for crypto marketplace

16.May.2019 | Editorial

Article published in Milano Finanza – May 16, 2019

There no more exact science than economics of cryptocurrencies. The reason is easily explained: all  analysts’ forecasts  were going to occur in the last three years. Bitcoin is the undisputed king with doubled prices in 2019. This is a limited asset and most of the $21 million of bitcoins under the Protocol has already been producted by Miners. The rally of recent weeks supports the perception according to which this is one of the last chance to invest.

Let’s go back to scientists’ forecasts. The next couple of months should be very favorable to investors. The Mantra is to buy and, most of all, to buy properly. In the jungle of promises, offerings, placements and exchanges, it is important to assess the real business opportunity with care and long-term perspective. Consulcesi Tech serves as lead advisor of ConsulCoin Cryptocurrency Fund, the first EU regulated investment fund for istitutional players and listed companies.

The fund capitalizes to the fullest and in balanced mode the benefits of investment committee about cryptocurrency and blockchain. The decision to focus on a qualified target of investors is supported by the global trend with the increasing interest shown by istitutional players in digital assets and especially in bitcoins. According to a survey conducted by American multinational financial services Fidelity Investments, they are close to 50 percent.

It is worth asking why there is this atmosphere of trust that has spread to the four corners of the earth. The trade war between the US and China with the increase of customs duties will have inevitable repercussions in the monetary field, with the Chinese currency that could be depreciated in order to stimulate domestic demand. This important currency movements – spolights also on US dollar on this point – could encourage many operators to bet on alternative asset class such as cryptocurrencies.

In addition to the turbulent financial markets, another thing to consider is the progress of many projects about blockchain especially in Asia. Japan and Singapore are two models about regulations. This shows that the compatibility between government authorities and blockchain community is already a reality. The population is aging faster and faster and raises serious questions about pension funds: so the Japanese government is encouraging citizens towards individual plans, including by using crypto-assets. Regulators, after the legislation on cryptocurrency in 2017, are now legalizing ICOs to protect investors and prevent money laundering. Singapore has gone even further: through the Monetary Authority of Singapore (MAS), after officially recognizing cryptocurrencies, it established itself as center of attraction of the whole area. Without forgetting key players such as South Korea and Hong Kong.

In this pinball action between Asia and United States, the U.S. House Committee on Financial Services just launched two task forces on fintech and Artificial Intelligence regulations. In the center there is the dear old Europe: increasingly aged like Japan but involved in the process of regulation like the United States.

The rally continues and the password in this prolonged phase is: investment. In a responsible, safe and smart way and waiting for further increases announced by analysts.