“The Cryptocurrency Industry Has So Much Potential” – What You Need To Know About Crypto | Personal Finances | Finance
Blockchain and cryptocurrencies have come a long way since first inception in 2009, and El Salvador’s adoption of Bitcoin as legal tender has been a strange and unexpected move, but does it mark the beginning of the end for traditional currencies? Pavel Matveev, CEO and co-founder of blockchain-based payment platform Wirex, shared in an exclusive interview with Express.co.uk what the future holds for cryptocurrencies and how regulations are changing this form of funding.
Speaking of El Salvador’s radical move towards Bitcoin, Mr Matveev said he didn’t think this ideal would be taken up by other countries: âNo, it won’t happen any time soon. I don’t think other countries are ready to do the same. When you talk about how countries and governments perceive cryptocurrency, I think it’s worth mentioning that many countries are trying to put in place a regulatory framework for digital currencies.
He said a year or two ago in the digital crypto world “there was no regulation and the trend started in Japan; it was the first country that started to regulate cryptocurrency. “.
Japan quickly began to regulate cryptocurrency, as in the early days of cryptocurrency trading it was known as the country with some of the biggest cryptocurrency hacks.
The introduction of licensing and regulation allows greater protection for customers, but it is not the end of hackers and scams.
“Big scams don’t happen that often, but there are still a lot of retail investors getting ripped off.” Mr Matveev said people are right to be afraid, but should understand that the security of cryptocurrencies has come a long way.
“There are a lot of scammers out there and a lot of people hear stories of people who have been hacked and lost thousands of pounds, it’s pretty scary.”
âAt the time, the news about Bitcoin was about ransoms, money laundering, the sale of drugs and weapons. We still see a lot of negative stories because that’s what attracts traffic, but now for sure it’s more neutral.
He also noted that the UK is quite ahead of some countries in terms of regulation, as the FCA already has records for cryptocurrency-related companies under permanent and temporary licenses.
Mr Matveev added: âIn the UK they have started enforcing regulations on companies providing cryptocurrency related services. Regulation is a big topic in the United States right now, and you can tell this trend has started in developed countries. I think this will continue in all other countries as well. “
âAll cryptocurrency businesses in the UK must be registered with the FCA. Because it is not regulated, if you are scammed the only thing you need to do is go to the police. The best protection against scams is to avoid getting scammed.
“Check the Cryptocurrency Company Register on the FCA website, there are permanent and temporary listings, but if you are working with any of these companies you should be much safer than the companies listed. on any of these lists. “
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This growing trend towards strict regulation makes it safer for customers, but can also have a negative effect on the market.
âMy first point is that regulation will make the market safer and expand it to more people. In my opinion, this will help with adoption.
âThe second point is that in the short term this could have a negative effect on price and volatility and some companies will have great difficulty in complying with the requirements.
âYou will never know when this negative effect will start or when it will end. Based on the price history there are always ups and downs, but if you look overall it is always going up, so whether you invest now or invest later, in the long run the price will go up. .
When it comes to crypto investing, the general outlook is that it is too volatile. However, as Mr Matveev explained, this is only true in the short term and ultimately depends on the use of tokens.
âAt the moment there are over 5,000 digital cryptocurrencies out there, I know it can be pretty scary, but the problem with cryptocurrencies and why someone might consider using them as an alternative investment, is that the price in the medium to long term increases, “began Mr. Matveev.
It is generally advised that before investing one should consider why they are investing in order to find the right investment to match the return they want.
Another common tip is to research all options thoroughly before investing any money, and with cryptocurrencies this can be overwhelming for new investors.
âThere are a lot of cryptocurrencies and the reality is that there are different use cases for different currencies,â he said.
A use case is basically what the token or coin can be used for once purchased, continued Mr. Matveev: âSome like Bitcoin are usually compared to digital gold, so there is value stored. Some of them can be used in payments as a stable value currency, in industry it is called stable coins.
âCryptocurrency is volatile, that’s the perception that people in the mainstream have is that Bitcoin is too volatile. If you look at the short term, yes it can be pretty volatile, but if you look at it. on a larger scale, digital currencies are increasing. â
But investors shouldn’t feel confined to well-known coins like Bitcoin and Ethereum, either.
âEvery day new cryptocurrencies are added. Sometimes I just look at the list and start to get scared. I think there are too many to be honest. The industry is developing, the market is developing. This is not about investment advice but in the current environment after Covid, when governments started printing a lot of money, having an alternative investment is a smart move.
âAgain, this is not financial advice,â he noted.
âIf you go to a coin analysis website, stick to the top three, top 10, top 20, that will give you an indication of how big or stable a coin is. Take a look at the use case, some will go for higher growth, others will have different benefits, âMatveev suggested.
âA fixed market, like traditional currencies, doesn’t have a lot of movement. Many people criticize cryptocurrency for being volatile, but on the other hand, volatility brings interest and returns.
âThe industry has so much potential, but when people talk about mass adoption, I think it’s still too early,â he concluded.