Tom Clancy provides an interesting take on how to survive the volatility resulting from current and proposed regulation of ICOs and the cryptocurrency markets. Thanks to the ruling by Chinese Regulators banning ICOs and all related fund raising, the prices of major cryptocurrencies have fallen.Some people were surprised at the impact of the Chinese ruling on Bitcoin pricing, but as Clancy explains, 42% of all Bitcoin transactions have occurred in China.
As the major cryptocurrencies stabilize, it's likely that regulators in other countries will take a harder look at ICOs and crypto trading. The SEC confirmed this year that it was investigating regulating ICOs and that ICOs may be considered securities.
Are cryptocurrencies still an attractive investment?
The short answer is Yes. The chart of cryptocurrency total market capitalization from January to August 2017 looks like a straight-line rocket. There will be more regulation and more volatility. But it's fair to say the markets will recover and continue on.
Estimated total market capitalization of the cryptocurrency market by 2025?
#Clancy has a conservative estimate of a $5 trillion total cryptocurrency capitalization by 2025.Peter Smith, CEO of Blockchain, and Jeremy Liew, the first investor in Snapchat, estimate that the market capitalization of Bitcoin alone may explode to $10 trillion by 2025.
What type of cryptocurrency investment is estimated to exceed $4 trillion by 2025 and will account for at least 80% of the total cryptocurrency capitalization
Clancy discusses asset backed tokens which are linked to tangible assets like commodities, fiat money etc. Asset-backed tokens are traded between people, with transactions recorded on the blockchain.Because they're backed by tangible assets, they're less risky than traditional cryptocurrencies.Asset-based tokens have started to appear. One example is LAToken.Clancy estimates:
that the market capitalization of the asset-backed cryptocurrencies may exceed $4 trillion by 2025, and they will account for at least 80% of the total cryptocurrency capitalization as market develops.
If Clancy is right, then asset-backed cryptocurrencies may be a huge moneymaker for investors at every level.
Read the complete article here: https://www.cryptocoinsnews.com/easy-way-navigate-crypto-markets-volatility-storm/
Image: Pixabay
IMO none!
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