Blockchain has been called everything from a dream technology to a bubble that has the potential to be the driving force of the next bear market in the United States. Just this week, more than $20 billion in market capitalization of crypto assets was erased in a matter of hours: bitcoin dropped by 6%, dipping below $7,000, and ether fell by 14%, approaching a one-year low, according to Quartz data.
This isn’t the first time for wild market swings, and it’s unlikely to be the last. By the time this article gets published, prices could be completely reversed: it seems like anything is possible. And that’s certainly one of the top reasons that financial markets watchdogs, the SEC and CFTC in the US, are warning investors while mulling over financial instruments such as ETFs.
Then again, it’s worth remembering that regulation is anathema to traditional supporters of the kind of decentralized monetary systems that distributed ledger technology represents.
At the Coinvention conference in Philadelphia, panelists presented differing beliefs about the rise of blockchain and the role regulatory bodies in the US can play to assist in its growth.