In a recent interview with Mark Quintanilla, host of CNBC’s Money Movers, WisdomTree CEO Jonathan Steinberg announced that Cryptocurrencies are here to stay and will continue to do so. In the coming years. This feeling was reinforced by the recent speech given by the former US President Donald Trump At the recent Bitcoin conference, there was huge potential for investors.
Main power door opener switch
According to Steinberg, the former president’s ambitions for cryptocurrencies make them more attractive to retail investors. Trump’s promises of regulatory clarity for Bitcoin and cryptocurrencies as an asset class are of great importance to the crypto market, which has since been bombarded with regulatory action by the Securities and Exchange Commission.
“I think this will have a very positive impact. Not just on crypto, the asset class, which is only half the story, but also blockchain-powered finance, which WisdomTree has been a pioneer in since early on,” Steinberg said.
Clear regulation is key to crypto adoption in the United States. In fact, the United States is very late in adopting cryptocurrencies within its regulatory framework. According to Sequential analysisThe United States ranks only fourth in the global crypto adoption index, behind Vietnam, Nigeria, and India.
Another factor that was mentioned is how Bitcoin It performs better than private investment over the long term.
“What’s interesting about Bitcoin is that without employees, without institutional buy-in, it raised over $1 trillion. Now cryptocurrencies as an asset class are over $2 trillion. I think they’re going to be mainstream and continue to be mainstream for years to come,” Steinberg said.
Although Bitcoin and cryptocurrencies in general are gaining momentum within the retail investor space, there are still hurdles to overcome before they become fully mainstream.
Cryptocurrency terminology continues to confuse people
Quintanilla mentioned the uniquely complex terms in the space like “halving,” “decentralized finance,” and “real-world asset tokenization” that “are still kind of scary for a lot of people who might be thinking about jumping into this space.”
However, Steinberg slips into the argument that regulators are skeptical of the asset class, thus hindering further mainstream adoption, which leaves retail investors — who are enthusiastic about the asset class — confused about what crypto really is.
“This idea has been embraced, but it has not yet become mainstream. We are starting to see it spread with crypto exchanges being launched in Europe and the US, and this development will continue,” Steinberg said.
Steinberg also cited WisdomTree’s experience launching its first exchange-traded fund (ETF) 20 years ago. He said confusion in early adoption is normal, but normalization of the term will occur once individual investors understand the underlying principles of the asset class.
Featured image by New Digital Age, chart by TradingView
