Cryptocurrency cannonballed into the collective consciousness in 2017, as prices skyrocketed up before crashing back down to earth the very next year.
While the price of bitcoin – the world’s largest cryptocurrency – spent much of 2019 hovering around the $5,000 mark, it took off in April, climbing more than 30 per cent in a single day.
So what’s changed in the last twelve months?
“There’s been the introduction of a fair few institutional products to market, insured products, banks coming online either to issue their own currencies or provide services for people who hold digital assets,” CEO of trading platform Bit Trade Jonathon Miller told Trading Day.
“The market is more mature and I think people who got a little bit hurt know what this is about and you’ve seen institutional money come in,” he added.
As financial institutions and regulators become more involved, the legitimacy of cryptocurrencies is increasing Miller said but it’s still a work in process.
“There’s more guidance around that now. ASIC is following so I think regulation is coming but it’s piecemeal still,” he explained.
“There are absolutely no standards out there… so this is very much a consolidation phase at the moment.”
While we might be a long way from using cryptocurrencies as a means of payment, many could be relied upon by financial institutions and businesses in other ways.
“What you have to understand is that most of these protocols offer an infrastructure on which businesses will build products,” Miller said.
So despite the recent boom in bitcoin, for now, it seems cryptocurrencies remain highly speculative as the sector continues to mature.
Only time will tell whether values will continue rising or whether there’s just more pain coming for those riding the bitcoin wave.
Watch the full interview above.