- Bitcoin has reached its highest price since the crypto market crashed in 2018
- If the crypto winter is truly coming to an end, we’ll partly have traditional financial institutions like the stock exchange to thank
- Once regulated stock exchanges list cryptos, investors will be able to move beyond investing in them as an asset and start using them to invest in other securities just like they would with any fiat currency
By: Jai Waterman, Co-Founder and Chief Enterprise Architect
Bitcoin has reached its highest price since the crypto market crashed in 2018, with some analysts predicting it could go as high as $10,000 USD this month.
If the crypto winter is truly coming to an end, we’ll partly have traditional financial institutions to thank. And I’m not just talking about how established, regulated firms like Fidelity Investments are going to start trading cryptos in the near future.
The Fidelity cryptocurrency fund and NYSE’s Bakkt solution promise to attract more new investors and more liquidity into the crypto market, but if you ask me, the real silver bullet will be regulated stock exchanges - like the Jamaican Stock Exchange (JSE) - blazing the trail and listing cryptos alongside other securities.
Because once that happens, investors will be able to move beyond investing in cryptocurrencies as an asset and start using them to invest in other securities just like they would with any fiat currency.
Why would you buy stocks with bitcoin instead of cash?
A lot of the appeal of bitcoin is its potential to make transferring money a lot faster, easier and cheaper than it is today, especially in comparison to wire transfers. For a wire transfer, you have to physically visit a bank branch, line up, fill out a long form, figure out the corresponding intermediary and forwarding instructions, and then pay an expensive fee.
Besides, how long does a wire transfer take? Up to five days internationally, after which time the opportunity you want to buy into might have expired.
The process is so inefficient that if I’m one of the little guys wanting to participate in an investment in France and I want to send $100 from my personal bank account in Canada, that transfer costs me about $100. I’m out of the game before I even started, along with thousands if not millions of other potential investors who don’t have an option to easily invest smaller amounts of money.
But if you have something efficient like the blockchain where you can transfer bitcoin or Ethereum for just pennies, it opens the doors to the world for those investors to jump in, helping connect issuers and entrepreneurs with the capital they need more easily, growing the value of cryptos in the process.
Bitcoin on the stock exchange: a snapshot
If you want to see what cryptos on the stock market looks like, look no further than Jamaica. In adopting Blockstation’s trading platform, the JSE is became the first stock exchange in the world to allow BTC and ETH to trade in a regulated environment with licensed broker-dealers in a manner maintaining best practices and compliance with regulators. Later this year the JSE plans to use our platform to list exciting STOs as well.
And the JSE isn’t alone. It may have been first, but several other exchanges are also moving to list cryptos and STOs.
What does this mean?
Through the JSE, both institutional and retail investors will be able to purchase safe, 100% insured digital assets like bitcoin and Ethereum and then use those assets to invest in STOs - firmly ending the crypto winter by fulfilling the promise of fast, convenient and inexpensive payments on the blockchain and sending the value of cryptos even higher in the process.
The future of investing and digital assets is here
What determines the price of bitcoin? A lot of it has to do with demand, which is very likely to keep on rising as more regulated institutions like Fidelity, Bakkt and the JSE begin supporting the crypto community.
Get in on the ground floor and bring your crypto to the stock exchange now.