The figurative gains of Bitcoin are bringing more regulatory surveillance to cryptocurrencies. According to the co-founder of a mining company, the respective scrutiny will prove to be beneficial for the digital coins.
Peter Wall’s interview on Bloomberg TV
Peter Wall, a Canadian businessman and CEO of the Argo Blockchain, noted that the interest of institutional investors in the crypto sector is consistently increasing. As a result of it, the BTC is progressing in one direction. The Argo Blockchain Plc hit 1,400% in the past year.
Peter further added that there will be hustle amongst the regulators just like it happens in any other sector.
The regulatory approaches for cryptocurrency are largely at a very initial stage. Meanwhile, the analysts suggest that the rules will evolve as the industry becomes more mainstream.
The U.K. financial watchdog recently prohibited the sale of crypto-derivatives to retail investors in order to warn Crypto investors. According to the U.K. regulator, the buyers can end up losing all their money.
On the other hand, the Securities and Exchange Commission has been denying applications regarding creation of crypto-tracking ETFs to many investment firms. VanEck Associates Corp. then initiated a new drive to launch an ETF tracking Bitcoin last month.
There is a range of investors who wish to trade crypto and few financial products. Hence, the consumers are witnessing a boom in the shares of crypto-mining companies.
The significant jump in Argos’s market value
Within the span of a month, Argo evolved with a market value of more than 300 million pounds. The institution mines cryptocurrencies with the use of high-powered computers to resolve complicated issues. It operates a 40,000 square foot resource in northern Quebec along with data centres in North America.
Meanwhile, the prices of Bitcoin have exceeded the double since November’s beginning. The recent value on January 8 was about $42,000.
The 2017 rally of Bitcoin vs the current one
Bitcoin bulls have analysed the potential outcomes of the current rally of BTC. They argue that it will conclude very differently from the one in 2017. Back then, the digital coin collapsed because the participants were mostly retail investors.
For the current rally, significant institutions and notable investors like Paul Tudor Jones, Scott Minerd and many others have emerged as potential participants in the market. In fact, they have already started allocating funds to Bitcoin or have expressed their will to do so.
Peter further added that the central bank has planned to launch their own versions of digital currencies. According to him, this will prove to a benefit for the sector rather than a hindrance.
It will thus allow more freedom for innovations for countries as well as the overall cryptocurrency market. The only and major difference will be that they will be centralised.
