In a recent interview, Sterling Witzke of Winkelvoss Capital stated her belief that there is insufficient security in cryptocurrency to entice investors who may be scared to make big financial commitments in the sector.
While some think that 2019 could be the year that investors are making significant moves in crypto, Witzke says that the facts are outweighing expectation. At the Crypto Finance Conference in Switzerland, Witzke outlined her concerns, namely that ‘there needs to be better custody, healthy debts and credit markets’..[for investors to be more attracted to crypto].
The Speed Of The 2017 Bull Market Has Made Big INvestors Scared Of Cryptocurrency
She believes that people are expecting a surge in interest from investors because of the speed of the bull market in 2017, and the expectation that the market will behave in the same way this year. She conceded that ‘at the level of underlying tech development ‘, [it is common for investors to give their all], but she believes that they’ll need more convincing to make big investments in crypto, saying that ‘it takes a while for institutions to get comfortable ‘. Two of the main concerns, Witzke had observed, for investors were a ‘lack of regulatory clarity’ (especially in the USA) and a lack of security.
While Witzke believes that crypto should offer investors the same level of security as other financial sectors, some believe that this goes against the peer to peer trust and trading ethos of the whole crypto movement.
Gemini Exchange Ad Campaign Emphasises Cryptocurrency Safety
One group who have made a move towards safer standards is the Crypto Exchange group Gemini. They have bucked the trend by releasing an ad campaign which emphasises the safety of their trading regulations, using slogans such as “crypto needs rules” and “crypto without chaos”.
KMPG have recently called for crypto to become a fully-fledged asset class, like other financial sectors, but have suggested that it will need institutional investment to do so. Perhaps, as Witzke suggests, crypto will need greater regulatory security to reach this goal.