Another variable, is the level of transactional activity and crypto acceptance an asset can receive. Over the past year, the market has doubled and the acceptance level and peaked. Each day, more and more large retailers are beginning to accept crypto payments alongside traditional payment methods. Big names like PayPal, Microsoft, Amazon, Starbucks, Burger King all made significant waves on the market already. We can't discuss this momentous year without a quiet nod to El Salvador. The first world government to give validation to cryptocurrency by adopting Bitcoin as a national denomination. We expect more economies with unstable national denominations to follow suite in the ensuing years.
Financial institutions require mature services, products and venues. These institutions help the market gain maturity too. You won't see these institutional organisations selling off assets at the drop of a hat because of a badly educated, negative Twitter post from the so-called Techno King himself.
Now, crypto needs to develop new tools and strategies to welcome in the traditional financial world.
- Easy access: Ease of access promotes greater uptake of a technology.
- KYC & compliance: Regulation, regulation, regulation. Is it a bad thing? We don't think so. If it makes customers safer then it's a good thing. Businesses cannot ignore KYC requirements.
- Transfer security: Securing transfers is vitally important for any market. Blockchain technology enables simple and fast transfers of value. Transfers can be exposed to fraudulent activity if not properly conducted and monitored. Security and trust can be established with a service like our escrow service.
- Asset safety: Substantial holdings of assets should be held safely and securely. There are various options available. You could opt for cold storage, custody or trusted 3rd party wallets.
- Liquidity: Today, venues that facilitate trading activities work with their own liquidity. This can be seen as a great competitive advantage. Whales and exchanges require high liquidity and it is a vital mechanic in the integration of traditional financial institutions.
- High Value Transactions: Large transactions, when executed on a standard exchange, always affect the market price of the traded asset. To combat this, traditional financial institutes creates and specific venue called a "dark pool". This enables whales to move large amounts of an asset without affecting overall price.