How Crypto And Blockchain Are Changing Investment And Regulators

Dec. 20, 2017 4:25 PM ETCOIN-OLD, GBTC, BTC-USD20 Comments
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A few weeks ago, top expert Dinis Guarda commented the major importance that blockchain and cryptocurrencies are acquiring in the recent times. He said that "crypto investing is becoming widely used by investors worldwide and is an area which is successfully replacing conventional investment instruments and somehow implemented and time-tested on equity, FX and CFD markets. With increasing transactions value and growing popularity of cryptocurrencies - it's a perfect time to see what and where cryptocurrencies will go and how peer-to-peer investing and asset management solutions can be created into the blockchain world."

Indeed cryptocurrencies are starting what some experts call a revolution in the financial system, the same way "Internet did thirty years ago" in the communication schemes.

The uncertainty that blockchain-based cryptocurrencies is currently going through in some aspects also happened to Internet developing in its early stages. That comparison is deeply explained by the Harvard Business Review in a recent article.

For them, Internet was the expression of a global communication without frontiers or middlemen, open and accessible for everyone. And so they see the blockchain revolution, for which they highlight the following:

"The existing financial system is very complex at the moment, and that complexity creates risk. A new decentralized financial system made possible with cryptocurrencies could be much simpler by removing layers of intermediation. It could help insure against risk, and by moving money in different ways could open up the possibility for different types of financial products. Cryptocurrencies could open up the financial system to people who are currently excluded, lower barriers to entry, and enable greater competition. Regulators could remake the financial system by rethinking the best way to achieve policy goals, without diluting standards. We could also have an opportunity to reduce systemic risk: Like users, regulators suffer from opacity. Research shows that making the system more transparent reduces intermediation chains and costs to users of the financial system."

Although they also warn of "larger players" who, as it happened (and it still happens) with the internet, can try to control it for their own benefit.

"Bitcoin was first created as a response to the 2008 financial crisis. The originating community had a strong libertarian and antiestablishment spin that, in many ways, was similar to the free-software culture, with its strong anticommercial values. However, it is likely that, just as Linux is now embedded in almost every kind of commercial application or service, many of the ultimate use cases of the blockchain could become standard fare for established players like large companies, governments, and central banks."

And they conclude that "similarly, many view blockchain technology and fintech as merely a new technology for delivery - maybe something akin to CD-ROMs. In fact, it is more likely to do to the financial system and regulation what the internet has done to media companies and advertising firms. Such a fundamental restructuring of a core part of the economy is a big challenge to incumbent firms that make their living from it. Preparing for these changes means investing in research and experimentation. Those who do so will be well placed to thrive in the new, emerging financial system."

As the Harvard Business Review said, blockchain is still in its early years of development. It has potential to change the financial system, being able to break through banned territory, controlled by Banks and large corporations. However, the potential is still there, and the will to shake the capitalist system still endure.

Precisely, it is about this, the blockchain breakthrough and the future of cryptocurrencies the two main topics of the oncoming conference taking place in London at 3, Noble Street on Wednesday, 20, at 5.30pm .

In this conference, Dinis Guarda and top experts Martin Bartlam, Jonny Fry, Derin Cag, Genevieve Leveille and Athanassios Kollyris will discuss the crypto world and the future of the democratization of investing and trading.

It is time for the blockchain to show its strenght to the world.

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