Notable Bitcoin Expert: Security Tokens Will Resolve the Cryptocurrency Bubble
Antagonists of the cryptocurrency markets are always on the attack, touting bitcoin and other digital currencies as mere bubbles. They usually use the volatility of the cryptocurrency markets, the rise and fall in the prices of cryptocurrency between 2017-2018 and the long crypto-winter to back up their claims.
Well, it doesn't really matter if they are right or not, one cryptocurrency proponent is in the news after stating that these’ ’bubbles’’ will decline in the future, as real developments kick in.
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Vinny Lingham, a staunch cryptocurrency enthusiast, who is also the co-founder and CEO of Civic, mulled over the future of the cryptocurrency industry against the looming prospect of security token offerings (STOs) introduction.
The bitcoin expert related his taught in a series of tweets on his verified Twitter handle, where he affirmed entrepreneurial freedom in the cryptospace, which is relative to its counterpart in the traditional financial sector.
He commented further by saying that the reward of the cryptoasset will be far greater than the post-dotcom bubble success of the FAANG companies, he added. FAANG stands for Facebook, Amazon, Apple, Netflix, and Google, which are the top five performing technology stocks.
Furthermore, he enumerated on the individual nature of the dotcom bubble, while referencing the multiplicity of the cryptocurrency bubbles that have caused various ripples in the crypto market. He was therefore of the opinion that as soon as security tokens go entirely mainstream, crypto bubbles will disappear.
Lingham’s tweet read:
‘’Crypto has had many bubbles already, but has the industry moves towards things like security tokens that have yield curves, bubbles are unlikely to form in those sub-asset classes’’
Cryptocurrency and the Security Tag
Blockchain-based tokens have always drawn a parallel with cryptocurrency but present an external asset which can be traded on a particular platform. These tokens are given to investors after an ICO, which will give them the privilege to stake, vote and even access some privileged facilities and open some special features within the network.
The question of whether a cryptocurrency is a security has been raging on for a while now in the cryptosphere, but the virtual currency is trying hard to fight the tag. With the re-introduction of the Token Taxonomy Act, digital currencies may not be classified as security any longer, at least not in the United States.
Although, he is still hoping that security tokens will hit the mainstream as an alternative way to finance network effect opportunities. He is thus of the opinion that this will not only be of benefit to the industry and cushion the negative effects of volatility but will also enhance utility tokens as well.
Cryptocurrency has gained worldwide acceptance and commendations, it even looks like the more they kick against its adoption as a currency, the more the masses latch onto the bitcoin bandwagon. The world's flagship crypto and other altcoins are fast gaining traction all over the globe and at this rate, it's only a matter of time before cryptos take over the world.
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