- A large number of investors perceive the crypto market as being too risky and "out of the box" for their taste
- As a result, they keep themselves (and their capital) out of the market
- With regulated bitcoin and ether just around the corner, however, there's about to be a downpour of liquidity
2017 was the bitcoin boom, with prices exceeding $20,000 USD. A ton of investors made it big while others missed out, leading to high demand and a serious case of FOMO for many around the world. Rather than lament missed opportunities, we should be asking ourselves the following questions: what prompted the boom in the first place, and what signs should we look for to tell when the next one will hit?
The answers, in order, could very well be: widespread acceptance, and Blockstation.
Looking beyond the bitcoin bubble
A key element of the 2017 bitcoin boom was that digital currencies began to make strides towards widespread awareness and acceptance. Many countries officially permitted bitcoin and some even launched their own national crypto, signaling to many investors that this new asset class was gaining legitimacy.
This perceived legitimacy fuelled speculators, leading to new liquidity in the market, leading to higher demand, leading to higher prices, leading to more speculation, leading to more liquidity… you get the picture.
The bitcoin bubble had to burst, however, and the market is more sober now than it was two years ago. For one thing, despite the progress many governments have made towards accepting bitcoin and other cryptos, that acceptance is not universal and for the most part traditional financial institutions just don’t play in the crypto space. This means mainstream investors, the ones who only invest through those institutions, have limited ability or incentive to jump in.
This reluctance is a big deal. Only 5% of Americans own bitcoin, compared to over 50% of Americans who invest in general. There is a huge market of mainstream investors who might be willing to add crypto to their portfolio, if only there was a way to make crypto look and feel like any security they own. When you consider that up until now the only way to get involved in was to go through an independent “crypto exchange” that might get hacked like Mt. Gox and Bitfinex or go under like Quadriga, you can see why the crypto community isn’t as large as it could be.
Blockstation, however, can help cryptos overcome those risks, drawing in mainstream investors and sparking the next bitcoin boom.
So what is Blockstation, and where does it fit in?
Blockstation is a Canadian FinTech with a proven trading platform for digital assets - things like security tokens and, of course, cryptocurrencies. Founders Marko H. Hafez and Jai Waterman both got burned by crypto hacks in the past and were inspired to find a way to make trading digital assets safe, predictable, and secure for the everyday investor.
What sets Blockstation apart from Coinbase, Kraken, and any other exchange you can name is that Blockstation isn’t an exchange.
It’s just the tech. And related processes, procedures, risk mitigation, and expertise.
Traditional financial institutions like stock exchanges can use the Blockstation platform to list digital assets in conjunction with their ecosystem of licensed brokers, complete with regulatory oversight, secure and decentralized custodianship of crypto in cold vaults with multi-signature authentication, end-of-day settlement by trusted depositories, and unlimited cash out / withdrawal - even to conventional bank accounts.
Oh, and 100% insurance on all crypto assets. Just in case.
The big news is that we are now live with the world’s first investor pilot to trade bitcoin and Ethereum on a fully regulated, licensed, insured stock exchange.
Bitcoin wisdom, courtesy of iTunes
Still not convinced? Don’t underestimate the power of legitimacy on mainstream consumers.
Before iTunes, the music industry was in serious trouble due to illegal downloads. People were consuming music for free. Why would they start paying for it just because Steve Jobs asked them to?
The iTunes model gave consumers an easy, predictable way to get what they wanted - music - without having to navigate a world of peer-to-peer services that carried a risk of viruses, weirdly formatted files, poor quality recordings, etc. In many ways, consumers weren’t choosing to pay for music, but for a standardized, trusted way to download it from a reputable provider.
In the same way, Blockstation gives investors a better, safer way to get into crypto, exchanging the Wild West excitement of bitcoin hacks for a more stable, predictable trading experience (complete with bitcoin insurance) through traditional stock exchanges. Goodbye, bitcoin discord; hello, crypto legitimacy.
When to buy bitcoin (or ether, for that matter)
Is it too late to buy bitcoin and make it big? No! It doesn’t take a bitcoin god to see that the second boom is just around the corner, bringing an end to the crypto winter along with a flood of new investors attracted by a familiar and trusted way to get into the market.
Simply put, the market value of crypto comes from supply, demand, and access - and all three are poised to rise dramatically.
What do you think? Will mainstream investors flock to trade bitcoin and Ethereum on a regulated exchange, and moreover, will hardcore, decentralized crypto enthusiasts transfer over as well? Let us know on social media using the hashtag #blockstation!