Paying via cryptocurrency may soon be the norm, according to a study from SharesPost. The research found that demand for cryptocurrencies is expected to grow in the near future.
Nasdaq is open to becoming a cryptocurrency exchange. This is what Adena Friedman, Nasdaq’s Chief Executive Officer, said in an interview at CNBC on April 25. However, as virtual currencies are still very lightly regulated, it would take some time to accomplish it.
First of all, it is necessary to understand what cryptocurrency means. The word “cryptocurrency” is a compound word of digital currencies which are secured using cryptography. They are created and controlled by computer programs and therefore not issued by the government. Unlike conventional currencies, the total amount that can ever be in circulation is limited. Bitcoin is the one that most people are aware of. While there were other media of exchange that used cryptography to secure transactions before 2009, Bitcoin was the first one to be decentralized, meaning that it’s not controlled by any central authority. The decentralized nature of Bitcoin comes from its use of the blockchain technology, which is a distributed public ledger that records bitcoin transactions in a list of records, called blocks. Each block of transactions is cryptographically linked to the previous block, making blockchains resistant to data modification. As a matter of fact, it is the users itself and their combined computing power that record transactions directly between peers, rather than through banks or other intermediaries. According to CoinMarketCap, there are now almost 1,500 cryptocurrencies, the total market capitalization of the entire crypto market is over $700 billion, and the daily trading volume exceeds $30 billion on a regular basis.
There are a number of parameters which would need to be in place before any action could be taken. In fact, Eric Ervin, CEO of Reality Shares which is an ETF firm, ranked Nasdaq CEO’s interest in cryptocurrency as a six on a scale of zero to ten. Regulation issues remain a primary concern for Nasdaq and many other institutional investors. First, the cryptocurrency market would need to mature and show stability over the long term. She said “Over time, if it ultimately does morph into a regulated environment, it does give us an opportunity to participate as a marketplace, but I think that is a longer road.” As a matter of fact, Nasdaq recently announced a surveillance deal with Gemini Trust Company, the digital asset exchange founded by early bitcoin investors Tyler and Cameron Winklevoss, to monitor cryptocurrency trading on its exchange for potential market manipulation and fraud.
Friedman underlined the difference between ICOs and cryptocurrencies. An Initial Coin Offering (ICO) is used by start-ups to bypass the rigorous capital-raising process required by venture capitalists or banks, so it is a way to raise money, while cryptocurrencies are an alternative to common currencies. She was less optimistic about initial coin offerings and suggested that “ICOs need to be regulated.”
How tradable are cryptocurrencies around the world?
Looking to the financial world, we noticed that Nasdaq is merely following the trend. Indeed, foreign securities exchanges are also looking into making cryptocurrency tradable. For instance, the Moscow Stock Exchange said last year that it was building a platform to allow for trading once the regulations are in place. Also, Venrock, a venture capital firm associated with the Rockefeller family’s personal wealth fund, partnered with a crypto assets hedge fund, called CoinFund. They are looking for start-ups that also issue their own coins.
In conclusion, cryptocurrency is still in its infancy despite the explosive growth over the last year. As the CEO of Blackhawk Partners, a New York investment firm, said: “There are hundreds of cryptocurrency available – the trick is finding those that have the best odds of becoming viable long term”.
Nasdaq is open to becoming a cryptocurrency exchange. This is what Adena Friedman, Nasdaq’s Chief Executive Officer, said in an interview at CNBC on April 25. However, as virtual currencies are still very lightly regulated, it would take some time to accomplish it.
First of all, it is necessary to understand what cryptocurrency means. The word “cryptocurrency” is a compound word of digital currencies which are secured using cryptography. They are created and controlled by computer programs and therefore not issued by the government. Unlike conventional currencies, the total amount that can ever be in circulation is limited. Bitcoin is the one that most people are aware of. While there were other media of exchange that used cryptography to secure transactions before 2009, Bitcoin was the first one to be decentralized, meaning that it’s not controlled by any central authority. The decentralized nature of Bitcoin comes from its use of the blockchain technology, which is a distributed public ledger that records bitcoin transactions in a list of records, called blocks. Each block of transactions is cryptographically linked to the previous block, making blockchains resistant to data modification. As a matter of fact, it is the users itself and their combined computing power that record transactions directly between peers, rather than through banks or other intermediaries. According to CoinMarketCap, there are now almost 1,500 cryptocurrencies, the total market capitalization of the entire crypto market is over $700 billion, and the daily trading volume exceeds $30 billion on a regular basis.
There are a number of parameters which would need to be in place before any action could be taken. In fact, Eric Ervin, CEO of Reality Shares which is an ETF firm, ranked Nasdaq CEO’s interest in cryptocurrency as a six on a scale of zero to ten. Regulation issues remain a primary concern for Nasdaq and many other institutional investors. First, the cryptocurrency market would need to mature and show stability over the long term. She said “Over time, if it ultimately does morph into a regulated environment, it does give us an opportunity to participate as a marketplace, but I think that is a longer road.” As a matter of fact, Nasdaq recently announced a surveillance deal with Gemini Trust Company, the digital asset exchange founded by early bitcoin investors Tyler and Cameron Winklevoss, to monitor cryptocurrency trading on its exchange for potential market manipulation and fraud.
Friedman underlined the difference between ICOs and cryptocurrencies. An Initial Coin Offering (ICO) is used by start-ups to bypass the rigorous capital-raising process required by venture capitalists or banks, so it is a way to raise money, while cryptocurrencies are an alternative to common currencies. She was less optimistic about initial coin offerings and suggested that “ICOs need to be regulated.”
How tradable are cryptocurrencies around the world?
Looking to the financial world, we noticed that Nasdaq is merely following the trend. Indeed, foreign securities exchanges are also looking into making cryptocurrency tradable. For instance, the Moscow Stock Exchange said last year that it was building a platform to allow for trading once the regulations are in place. Also, Venrock, a venture capital firm associated with the Rockefeller family’s personal wealth fund, partnered with a crypto assets hedge fund, called CoinFund. They are looking for start-ups that also issue their own coins.
In conclusion, cryptocurrency is still in its infancy despite the explosive growth over the last year. As the CEO of Blackhawk Partners, a New York investment firm, said: “There are hundreds of cryptocurrency available – the trick is finding those that have the best odds of becoming viable long term”.
Bitcoin’s price over the last year
Ilaria Pagliara