Jim Radecki Touches On How the Bitcoin Industry can Reach the $1 Trillion Crypto Market Cap
In a recent article uploaded by Jim Radecki, the Global Head of Business Development at Cumberland, he says that developers and companies should keep working on their projects for cryptos to reach $1 trillion market cap.
Back at the beginning of 2018, the virtual currency market reached an all-time high of over $800 billion. There were several individuals and investors purchasing virtual currencies, including tokens from ICO and minor coins that might not even be available anymore.
Although this was very positive for the market at that time, investors did not take into account that the infrastructure was far from being enough to sustain this amount of newcomers. Most of the networks were behaving poorly while other projects did not even release working products to the market.
According to Radecki, the crypto asset market structure is still extremely fragmented. At the moment there are more than 200 different exchanges and platforms, all of them offering different products. At the same time, there are different jurisdictions determining the way in which these platforms will be built. He explains that there is no one-stop solution in place nowadays.
About it, he wrote:
“The industry also lacks generally accepted standards or best practices around security controls, operations and research and valuation. You have to think about managing your operational risk in a completely different way than in traditional markets – this is the only market in the world where the operational risk is greater than the financial risk.”
At the moment, there are several companies that are waiting for greater clarity from regulators all over the world before placing the funds in the space.
Because of these issues experienced in 2018, companies started to develop better solutions and improve their systems. The bull market woke developers up to start working on new services and products. At the same time, regulatory issues are starting to be more clear than before, and companies in the space have been working properly to make that happen.
Radecki mentions that several individuals from the mainstream financial world entered the cryptocurrency space to start providing better standards and their expertise from the traditional market.
Furthermore, new industry associations and SROs that focused on protecting market participants have been introduced. They are also providing clearer rules and standards for the crypto space. Two of these organizations are the Blockchain Association, the Association for Digital Assets Management (ADAM) and the Virtual Commodity Association. This should help the market to start a better 2019.
He ends the article saying that investors are paying too much attention to price, but there is a lot of work that is being performed to create real and valuable products and services. Radecki expects 2019 to be very similar to 2018 with more people working behind the scenes and preparing their strategies for the next wave of fast growth. This is what Cumberland and many other firms are currently doing.