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Morningstar Strategist, Amy Arnott while giving an interview to the publication talks about the future of cryptocurrencies, ETFs, Crypto regulations and much more. She feels that Cardano is a very optimistic currency to take the mainstream place with Bitcoin and Ethereum.
A cryptocurrency strategist at Morningstar firm, Amy Arnott, while sharing her views to a publication house on crypto regulations, ether and Cardano, feels that crypto regulation is a hindrance in the success of the industry. There are many cryptocurrencies which are not cash generating. Hence, it becomes very difficult to give a suitable price for them.
However, she said that Ether has an inherent price because it is used to power decentralized finance (DeFi) transactions and support non-fungible tokens. She further explained that ether is like a utility, and it should give some price floor, but it cannot be known what it should be. To make these currencies more valuable, they are used more and there will be more interdependence and connections.
Arnott sees Cardano (ADA) to be a promising cryptocurrency with a bright future to it. She feels that the currency has the potential to join bitcoin and ether to form a big three of mainstream cryptocurrencies. Since Cardano is the same as Ethereum, it has a lot of potential technical applications.
She further elaborated that institutional investors are showing a great interest in the cryptocurrencies. They are adopting cryptocurrencies at a greater pace. They see it as an investment opportunity. As the trend continues to grow, there will be cryptocurrencies which will become more mainstream.
She is very optimistic about the future of the cryptocurrencies and sees that there will be a diversified cryptocurrency index fund in the form of an exchange-traded fund (ETF). On the contrary, the Securities and Exchange Commission of the US has not given any green signal to the ETF. Hence, it will make it very difficult for the mainstream investors to gain exposure to cryptocurrencies.
The American financial services firm, Morningstar’s strategist, feels that regulatory risk is a big issue which is the driving factor behind the volatility in the cryptocurrencies from the past few months. If the governments worldwide show negativity against the cryptocurrencies or bitcoin or Ethereum, it would create a ruckus.
In the last week, there was a surge seen in the Cardano cryptocurrency. Many positive sentiments are floating on a daily basis. The token is currently trading on $1.38, after starting on a bullish note.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
