There are many talks about crypto-bubble. Some people believe, the cryptocurrency is nothing but a bubble that will burst sooner or later, while others insist that cryptocurrency is the future of the financial world.
Jim Newsome, the former chairman of the Commodity Futures Trading Commission, the US financial regulator, has shared his opinion about cryptocurrencies. He believes that yes, cryptocurrency is nothing but a bubble, but there is one factor that will not let the bubble burst for now. This factor is the lack of proper regulation. The absence of regulation means that institutional investors aren’t able to participate in the cryptocurrency market, hence, the injections of big money are technically impossible, for now.
Newsome had to deliver a report to the Securities and Exchange Commission. He is the one who is working on the development of regulation that will control the cryptocurrency market. But the report was delayed. The reasons are evident: the USA is trying to be a country that creates a friendly and free space for cryptocurrency development, while the regulation will definitely put some limitations to this free and friendly space.
Meanwhile, the arguments about cryptocurrency bubble are going on. If it is a bubble or the future of the financial world, we will see very soon.