The topic of cryptocurrency adoption continues to be popular among digital assets enthusiasts since this would be the final goal of the industry. Although the past year had been turbulent, with a pandemic creating a short-term liquidity crisis in March 2020 and a rapid sell-off in crypto, a massive turn to the upside occurred, driving Bitcoin and other altcoins to new all-time highs.
Results were impressive during the first few months of 2021, given the cryptocurrency market capitalization doubled to $2.3 trillion in 3 months, on the back of solid interest from institutions, growing retail demand, and a flight to assets that can protect against the diminishing purchasing power of fiat currencies.
Institutions continue to purchase crypto
Square, MicroStrategy Incorporated, or Tesla are just a few of the brands that currently hold cryptocurrencies, showing there is growing trust in digital assets and confirming the world is on a pre-set course towards financial digitalization. Each time a new company announces large purchases, valuations pick up, with more market participants joining the trend.
On top of the companies that have physical crypto holdings, brands like PayPal Holdings Inc., Visa Inc., Mastercard Incorporated, or Goldman Sachs are offering various services that facilitate the purchase, selling, or transfer of cryptocurrencies. The industry is no longer dependent on traditional exchange platforms and it is possible to work with trusted brands in order to take advantage of the blockchain benefits.
Brokerages start to accept crypto
Interest in crypto trading has surged, given the positive performance across the market. More recently, though, some movement can be spotted on the traditional brokerage front as well. Platforms like easyMarkets are now allowing customers to deposit, withdraw, and trade in Bitcoin, on various popular CFD assets, including shares, cryptocurrencies, commodities, metals, currencies, or options.
Even though Bitcoin is used as the account funding method, easyMarkets clients can still access the standard benefits offered, including negative balance protection, risk management tools like free guaranteed stop loss and take profit, no slippage, and availability on web, app and Metatrader 4 platforms.
easyMarkets is regulated across multiple jurisdictions and offers strong financial security as well as guarantee privacy for customers, in line with the highest trading standards. An account denominated in Bitcoin shows that this cryptocurrency can have multiple applications, on top of the usual benefits – medium of exchange and investing tool.
Regulation – a key issue?
Another important factor that could have an impact on cryptocurrency adoption in 2021 is regulation. This narrative had shifted back in the spotlight, as major countries such as China or the USA are starting to take additional measures. Public institutions continue to be fearful that, without a regulatory framework in place, cryptocurrencies could be used to bypass the fiscal system or to finance illicit activities.
The involvement of large companies in the crypto space confirms that these digital assets can be used properly, in compliance with the law, and by ensuring the highest protection for customers. As long as it supports the long-term of the industry, regulation can act as an incentive for all the market participants to comply with strong standards, the same as other industries are already doing.