Investments help people generate wealth. Ideally, so they have a good nest egg for themselves in retirement. In addition, their families will have financial security once they have passed.
Given that so much of traditional investment (stocks, shares, commodities) has been hit hard by inflation over the last few years, investors and traders have moved to other avenues to try and generate sizeable wealth for themselves.
One of the main types of investment is cryptocurrency. We are at a stage where anyone in investment has heard of Bitcoin. Some people claim to have a better knowledge of it than they do. Others denounce its capabilities.
Usually, more traditional investors who do not understand how it works will call it a Ponzi scheme or scam. However, if you have a basic understanding of cryptography and blockchain technology, it’s pretty evident that cryptocurrency isn’t a scam.
There’s no doubt that cryptocurrencies have had a tremendous impact on multiple sectors. This includes a variety of big industries, such as gambling, as nowadays, you can explore the best crypto casino USA offers without leaving your home. You just need to open your phone and start playing with your chosen cryptocurrency. Yet, you must keep in mind that you should only gamble for entertainment purposes – if you begin to see cryptocurrency rewards as a form of income, this is a red flag that you should pay attention to.
That is to say, if you struggle with the risky nature of cryptocurrency, speak to somebody who can help you with your problem before you face financial difficulty.
With that said, since Bitcoin is the most profitable investment so far in the 21st Century, many people have joined the party late and invested after the boom period. Some of these people have profited handsomely. Others, not so much.
In any event, it’s still a hot topic of discussion. So how will the future of cryptocurrency trading play out? Will it still bring propitious gains, or will regulatory bodies aim to stamp the fire out entirely in the USA?
Many detractors of cryptocurrency are people who don’t understand how it works. They are afraid that a way of sending money that completely removes the need for a secure third party to oversee the transaction exists. As a result, Bitcoin threatens the whole fabric of traditional investing.
Since it isn’t adequately regulated in many countries, it is open to volatile movements. As a result, cryptocurrency assets can be hazardous to invest in. If you use risky instruments such as futures trading and do not study your market, you can make catastrophic losses.
Suppose you can stomach the incredible volatility within these markets. In that case, many prominent institutional investors, such as Cathie Wood, still believe that cryptocurrency is still a solid investment and that the best is yet to come.
It would be best if you never had all of your investment in one particular cryptocurrency or cryptocurrency in general. A solid risk management strategy that plenty of professional traders use is to spread their risk across several different assets, such as
- Stocks & Shares
Many angel investors target assets within these four industries, but more have also begun to move into the cryptocurrency space. The future of cryptocurrency looks bright, but it will be a rocky road either way, especially in the USA.
The SEC started to go after a number of projects in the cryptocurrency space in early 2023. The outcome of these cases will determine the future of cryptocurrency investing in the USA.
The SEC need to be careful that they do not drive highly innovative tech companies that have the potential to bring in billions of dollars in tax. The Ripple (XRP) case is an example of an innovative company considering relocating to another country, given the targeted and lengthy attack the SEC has levelled at their operations.
This is the tip of the iceberg. There have been calculated lawsuits taken at Kraken as well as other projects. Gary Gensler means business, which could spell trouble for the USA as a powerhouse in the cryptocurrency industry.
Depending on the outcome of the XRP case, the USA could drive away innovative projects to countries looking to become more crypto-friendly. But, of course, this is all speculative at the moment.
Many other countries still need robust regulatory frameworks to stop this market’s swathes of illegitimate scams. There’s no guarantee that regulation will destroy the industry in the USA either. On the contrary, it will stifle it, particularly in the short term. However, it could be a solid long-term move if the framework is lucid and robust.
As far as investing goes, with many institutions citing cryptocurrency as a solid long-term plan, it seems like a good investing move. However, with big traditional industries lurking and big regulatory bodies aiming for the industry, the future of cryptocurrency investing in the USA is in for a defining few years.