If you look at the facts and numbers for an industry that just turned 10 at the start of the year, the adoption rates are still low. In the last two years however the cryptocurrency industry has faced explosive growth rates in adoption despite the bear market.
According to a study by University of Cambridge Judge Business School, the total number of user wallets doubled in 2018 from 80 million accounts to 150 million accounts. The total number of participants of cryptocurrency increased by a staggering 94% in the same period. However impressive these numbers may look, the cryptocurrency industry requires mass adoption to fully realize its vast potential.
In an interview with BlockPublisher, the CEO of MediaShares, Gene Massey spoke on the crucial role institutional investors will play in the push for mass crypto adoption. MediaShares is a crowdfunding startup that deals in blockchain projects and cryptocurrency companies.
The two pieces to pushing for mass adoption are liquidity and the overall profit potential the cryptocurrency projects hold. Gene believes that the institutional investors are capable of increasing the liquidity of the field and legitimize the use and exchange of cryptocurrencies. If the big players in the market such as Fidelity and Blackrock invest in the blockchain technology and crypto, the retail users will soon follow the trend.
“When typical retail investors see Fidelity, Blackrock, and other large firms investing, they will feel comfortable in following them. Major brokerages will soon follow to capture their share of a new revenue source, and that will give validity and mass adoption by a much larger field of investors.”
The CEO further commented on the possible “big players” that should take a keen look at the industry and invest so as to push retailers into the industry. Gene said,
“Blackrock, Vanguard, State Street, and BNY Mellon are recognized as the largest institutional investors and if they adopt Blockchain and Cryptocurrencies, you will see massive new investments from retail.”
As stated above, the institutional players will play a big role in offering legitimacy and added liquidity in the industry. With the blockchain space ripe with opportunities to transform any multi-point data access industry, the institutional investors will soon come flocking in.