By George Ward
The crypto trading firm FTX’s spectacular implosion has thrown the digital asset industry into turmoil for weeks. The crypto space saw a slight recovery as the dust began settling. Investors believe there is hope for the fledgling industry.
Focus On Recovery
An experienced crypto investor and one of the vocal advocates of digital asset adoption, Kevin O’Leary, has shared his thoughts on the industry’s future. The investor stated that he did not expect more speculations from the ecosystem other than recovery.
In a recent interview with Stansberry Research, O’Leary disclosed that the FTX debacle has succeeded in stirring the policymakers in Washington into action. The whole talk about FTX is geared toward recovery, and the one shining light about the debacle is that it has poked the bear in the US capital, added O’Leary.
According to the industry expert, he has received many calls from lawmakers interested in pushing the crypto regulation agenda to develop policies and guidelines around digital assets. He believes that the clamour by the US Senators and Congressmen and women hints that the crypto space will enter a much better phase within the next 12 to 14 months.
The Future Of Digital Currency
O’Leary noted that the crypto ecosystem would experience more bankruptcies within the next few years. According to him, this is necessary to wean the industry of terrible exchanges, managers, and fraudsters.
Furthermore, the crypto investor believes that the regulatory moves from several jurisdictions will prompt new players to exhibit discipline. Hence, compliance will emerge from the traditional banking system to the crypto market.
He added that these new industry players would work within the confines of the law, which would have a broader impact in the long run. Responding to the statement made by Charlie Munger, the vice president of Berkshire Hathaway, about crypto being a “gambling contract,” O’Leary said that Bitcoin and crypto are going nowhere.
According to him, Bitcoin is software, and the people managing it that abuse its uses, not that the software itself is terrible. In a similar opinion, Bloomberg’s senior commodity strategist, Mike McGlone, opined that cryptocurrency might be facing its first-ever recession.
McGlone believes that the last global recession paved the way for Bitcoin’s emergence and that the industry should expect similar milestones. Bitcoin and the entire crypto assets have had a torrid 2022 with a series of bankruptcies, hacks, and the Russian-Ukraine conflict destabilizing the global markets and negatively impacting virtual currencies prices.
However, the crypto market began the new year in the green, with Bitcoin breaching the $20,000 price level for the first time in weeks. Nevertheless, the market is still not back to its previous highs as the industry awaits further regulatory moves by the US and European regulators, who are expected to take more strict guidelines.