Is Cryptocurrency Going Mainstream? 0 84

What are the implications of Circle buying Poloniex

Recently a Goldman Sachs backed digital currency marketplace called Poloniex bought peer-to-peer payment network Circle. This has raised some questions within the cryptocurrency community.

Concerns

Is cryptocurrency going corporate? Is this the end of the completely decentralized frontier in which anyone with skills and a dream could create the next big thing? Is the infrastructure that upholds the cryptocurrency ecosystem, now going to be run by the financial establishment? What does it mean for the mainstream adoption of cryptocurrency? What are the upsides of large financial institutions taking an interest in cryptocurrencies?

The advantages

One expert who thinks this is a good thing is Erik Voorhees CEO of digital asset exchange Shapeshift. He spoke to CNBC and said that he predicts that more cryptocurrency companies will consolidate in 2018. Voorhees said “I think this is a really good sign for the industry. It shows that a lot of companies are going to start consolidating and that will bring out the best talent.” Voorhees believes that with more capital and less of a talent spread those who are truly talented will have an opportunity to rise to the top. It will also create companies with more capital and therefore more power to branch out into different avenues of the market.

The benefits of mainstream adoption

Another advantage is the fact that being embraced by established financial institutions will help cryptocurrencies deal with any upcoming government regulations. These corporations have credibility that they can lend to cryptocurrency startups. This means that they will be taken more seriously and will, therefore, have a much easier time being adopted as actual mainstream currencies. The problem at the moment is that many banks don’t trust cryptocurrencies and their staying power. With the backing of these established companies, they may have more of a chance of going mainstream.

Why the cryptocurrency market is attracting mainstream inventors

The cryptocurrency markets capitalization has grown from $20 billion at the beginning of 2017 to nearly $500 billion in the first few months of 2018. That is a phenomenal climb in value, in a relatively short amount of time. Circles co-founder Jeremy Allen, also speaking to CNBC said: “These markets are still in their infancy but they hold enormous promise.” He then predicted, “Maybe the first $1 trillion company in the world will be created in this space.” It is no wonder with predictions like that established companies want to get in on the game.

Mainstream cryptocurrency adoption is on the rise, and the landscape will start to change to reflect that. More companies are going to consolidate, creating fewer, but more powerful and more valuable companies on the market. Whether this is a good thing or not depends on your perspective,  the experts seem to agree that it will have more benefits than drawbacks.

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