Despite the present market attitude, forward-thinking firms, executives, and investors are optimistic about the crypto industry’s long-term potential.
Harold Bossé, MasterCard’s Vice President of New Innovation And product Development, believes that crypto assets and blockchain technology will be widely adopted sooner than later.
Millions of users are already consuming and transmitting crypto assets around the world, as Bossé observed in an Avalanche’s Powering Business with Blockchain series on May 24:
“They are early adopters and new adapters, but we have transitioned to mainstream markets, [and] that will be a critical feature for financial institutions to enter the field.”
Cryptos have numerous challenges.
He pointed out several hurdles to overcome until cryptos become popular. He cited a lack of top management awareness and business reasons concerning scalability, cost, speed, and regulatory considerations.
“No one will use digital assets on blockchains unless they’re absolutely certain this money is good money,” Bossé continued.
Another issue posed to Bossé was how can the crypto industry get monetary benefits from offering new products. He said that the need is to encourage firms to think about solving problems. It could be done in novel ways using new technologies that allow them to charge for various services.
He compared the current status of the crypto business to the internet’s early days. “Think about the dawn of the internet; no one could have predicted that Amazon would become a reality – you need the web for Amazon to function,” he said before adding:
“We’re in the same boat: how do we change people’s life and reach out to demographics or groups of individuals who don’t think about blockchain first and foremost, but rather their business problems?”
MasterCard has already shown interest in the crypto sector with crypto-backed credit services and the recent filing of NFT and Metaverse trademarks.
Bitcoin and Ethereum, for example, are large cryptocurrency networks that answer a few very specific needs. BTC offers almost instantaneous, low-cost money transfers across international borders, while ETH offers a decentralized application and smart contract Web3 economy. Many more crypto projects have sprung up in recent years, but only the most resilient will survive.
The remarks come as cryptocurrency prices continue to fall in what appears to be the start of a long bear market.
The Crypto market is highly volatile.
You can assume you’re in a bear market when the mainstream media revels in the FUD (fear, uncertainty, and doubt) with sensational headlines suggesting everything will crash to zero. Following the ICO craze and Bitcoin’s quick ascent to a top of $20,000 in 2018, the same thing happened in 2019. Even though the asset is now selling 50% higher than five years ago, the doomsayers are in force with their tired old tales of woe.
Bear markets are frequently regarded as beneficial because they eliminate speculators and leveraged gamblers. It allows strong hands and those who believe in what cryptocurrency stands for – financial freedom – to thrive. They also provide investors more time to investigate and accumulate in anticipation of the next bull market.