Pages:
Author

Topic: Will regulating cryptomarkets increase or decrease trading volumes? (Read 516 times)

full member
Activity: 448
Merit: 100
I see regulating cryptocurrency as a thing that will increase the cryptocurrency market because trust will increase and the market will enjoy investment inflow from both corporate and individuals. Reducing the ICOs is good because majority of them are scam recently.
member
Activity: 280
Merit: 10
I'm a bit more optimistic. With regards to ICOs, more regulations should be able to weed out those that were set up with the intent to scam people. This would increase overall investor confidence in the market, which might encourage them to put in more money. Since the legit projects get more share of attention - and funds, it also increase the likelihood that they'd succeed.
I do not think so. Increasing or decreasing transactions depends on many factors.
If the market is well regulated, we will have space for institutional investors, for merchants and for normal use.
This will lead to more money entering the market as a form of investment, and more money into the market to use real bitcoin.
I still believe the rule is a good thing, so I'm not really afraid of it.
Then we can identify the market.
hero member
Activity: 2268
Merit: 789
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh

There are a lot of implications when cryptocurrencies become regulated by the government. You must understand that almost all investment mechanisms are regulated and controlled by the government which explains on why they are viewed as the standard instruments of investment. If cryptocurrencies were to be regulated, expect prices to be controlled at some moment. This will lessen its volatility and become centralized. If the government also has the control of it, they can provide collaterals and securities to most investors which protect them from scams and hacks.

Despite having some positive conditions when regulated, in my opinion it defeats the purpose of investing into bitcoin- wherein you realize large amounts of profits in a short amount of time comared to other investment instruments.
member
Activity: 420
Merit: 11
Perhaps limiting ICO will be beneficial to the development of the crypto currency and will inspire confidence in this technology from new investors, when there will be no scam projects.
full member
Activity: 854
Merit: 140
It will surely decrease the ICOs since regulation means that startup companies can't be popping with project everyday where they only copy someone's else work and edit some of them and presented as new work. However if we're talking about trading volume then it depends on what law each countries will apply into bitcoin. Forex market and stocks markets are regulated and they have big volume compared with other investment market.
legendary
Activity: 1232
Merit: 1029
Once regulated then expect for these sudden change would really have significant effect.I do see also that the price will really increase yet the trust have been already built up considering that there are still lots of big institutions,corporations which is still on doubt due to cryptocurrency decentralization.There might be some people dont like it but i do see most people will prefer such thing.
Even without regulation, it is beginning to have a huge effect. Looking at what has happened to CTR recently, we would realize how much the system is already and gradually being cleaned. It is a highly self principled distributed system hence it will work more effective than a centralized regulated system.

In one word, even the projects in the market who have gone against the rules in the past when the market was not regulated are no longer going to be safe in a regulated market, while those who are legal will remain and in this kind of structure, there would be a lot of trust for those who may want to invest big in the market.
hero member
Activity: 840
Merit: 502
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh
I really think that the increasing regulation while being very unpopular between the members of this forum and all of those that have held their bitcoins for a long time will help the price of bitcoin to reach new heights, people are going to feel a lot more protected with regulations in place and this will bring a lot of fresh money which by the way we need if we want bitcoin to reach its previous all time high.
legendary
Activity: 1582
Merit: 1059
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh

I actually think it will increase trust and the trading volume will increase. If the market is well regulated, we will have space for institutional investors, for merchants and for normal use. This will lead to more money entering the market as a form of investment, and more money entering the market for real bitcoin use. I still believe regulation is a good thing, so I'm not really afraid of it.
hero member
Activity: 1666
Merit: 753
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh

Tough question. It's hard to envision what will happen in the future as always since there are simply so many variables.

What I believe is that volumes shouldn't change that much. In fact, volume may actually be positively affected by regulation if it is reasonable and aims to protect crypto traders from scammy exchanges etc.

But if regulation comes, then I think most of the volume will shift from individual traders to institutional investors, as it becomes easier and safer for them to enter a market which regulated. It'll become harder for individual traders to execute trades, however. But ultimately, it depends on what sort of regulation we are talking about here. Whether tightening KYC, exchange licensing, and so on.
jr. member
Activity: 462
Merit: 1
the fact remains that one of the forces that attracted so many persons to bitcoin is decentralization of currency and when it is regulated what do you think will happen? what happen to hard currency will also happen to it monopoly by few cabals. as such the volume of trade will be affected negatively by mass exodus of investors.
hero member
Activity: 1148
Merit: 527
I don't agree with it. Now there are many trust funds that invest in various projects. How much did you earn from investing in these funds? It will be the same with government regulation. The most promising projects will be recognized as unreliable and will be redeemed by the rich. These projects will generate revenue for them. The most promising projects can be banned by the government for political reasons.
If such a thing is going to happen, would there not be something to hold against it to be able to easily ban it? As long as the promising project is legal and not going against the law, I am sure such a thing would not happen. Sure, in that case, we should expect the bigger players to want to be holding a strong hand in such a market and there is no 2 ways about that, as this would give them a chance to be the market maker in every scenario of the market as the case may be.

Getting the support from the government will give the crypto market better trust from others and it means more money will come in to cryptocurrency specially to bitcoin.
Yes, in that kind of scenarios, we should expect that a lot of big investors in the finance sector will also want to be a part of the cryptocurrency ecosystem since there are so much benefits to derive from it and in that case, there would be a lot of volume in that case considering how big the institutions are always into anything they want to be a part of. In as much as annoying regulation may sound sometimes, the actual fact is that we really need it to move forward.
newbie
Activity: 18
Merit: 0
It will definitely increase trading volumes. I believe most people whom have not invested in cryptocurrency are afraid to invest or trade into cryptocurrency because they believe that if they do, they might end up been scammed by some exchange owners or ICO developers. But with regulation, things might work out a better, cause ICO developers or exchange CEO will be held responsibe for any scam or hack.

This is the most optimistic way to see it, on the other side of the spectrum people are saying that it will decrease for the exact same reason. that investors that were attracted by the decentralization will quite the game.
newbie
Activity: 18
Merit: 0
I'm a bit more optimistic. With regards to ICOs, more regulations should be able to weed out those that were set up with the intent to scam people. This would increase overall investor confidence in the market, which might encourage them to put in more money. Since the legit projects get more share of attention - and funds, it also increase the likelihood that they'd succeed.

As you said this is the optimistic point of view and I most agree with it. But hoping the regulations won't kill all ICOs.
sr. member
Activity: 686
Merit: 262
It can go either way, but I still have a strong feeling that regulating the market would only make users trust it more and hence more money will pour in the market.

On the contrary, this can be negative news for people who are making to make 2x-10x profits since such volatility would no longer exist if any government institute begins regulating this market. People would no longer get the amazing returns they had been getting till now.
hero member
Activity: 1246
Merit: 529
CryptoTalk.Org - Get Paid for every Post!
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh
Obviously, this will limit the size of scam and unnecessary ICOs in the market and would give the space a better form than what we are having presently. However, this would usher in big time players in the market and push aside some newbies who are just looking for the quick profit from just any ICOs or pump and dump coins or tokens.

In short, this is going to end up being more like a matured market and that is how the market is going to be responding. Volume will get bigger however.

Yeah i definitely agree with how you coined it at "mature market". It may be a bit worrisome when you first hear about cryptos being regulated but we're all aware of how an unregulated market can drag the whole thing down in the future. Illegal activities will outweigh the benefits crypto provides. It's healthy to say the least
jr. member
Activity: 266
Merit: 1
DATABLOCKCHAIN.IO SALE IS LIVE | MVP @ DBC.IO
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh

From time begin, I have questioned the rate at which ICOs have been cropping  up every now and then without a regulatory body/system. I do believe that when and if the markets are well regulated, it will help build the trust in the Cryptocurrency markets and in turn bring in by convincing a lot of persons in investing more in Cryptocurrency. So, I agree to the regulation and of the opinion that it will help increase the size of the Cryptocurrency market.
hero member
Activity: 1134
Merit: 515
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh

Interesting question to ponder, for sure. I think however there is no real correct answer to this. It depends on what type of regulation that we're talking about, here. If it's a flat out ban of crypto, then for sure, the volumes are going to go down, no doubt.

If it's some kind of regulation on exchanges/ICO that requires licensing and registration, then I actually see potentially increased volumes due to institutional investors being more confident in investing.

But just because volumes are increased, doesn't mean that the regulations have done any good to the average bitcoin user. Volume also isn't a very good measurement of how regulations affect the usability of BTC, either.
Trading is one of the best thing to do when it comes to that of making more money as you can manage to make some good earning and that too on daily or weekly basis. In trading, there are number of things which can affect you and that you need to take care of each and everything to make some good earning and to avoid suffering from any kind of loss. Regulating crypto currencies surely result in increase in the trading volumes.
member
Activity: 266
Merit: 10
Some users making decentralized trades taking a shot at the blockchain with no concentrated expertise, and where exchanges have a trustless nature. It is another inquiry totally, however, regardless of whether decentralized trades could deal with expansive exchange volume and in circumstances where (near) quick exchange affirmation is required.
legendary
Activity: 1512
Merit: 1041
worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    Huh Huh
Obviously, this will limit the size of scam and unnecessary ICOs in the market and would give the space a better form than what we are having presently. However, this would usher in big time players in the market and push aside some newbies who are just looking for the quick profit from just any ICOs or pump and dump coins or tokens.

In short, this is going to end up being more like a matured market and that is how the market is going to be responding. Volume will get bigger however.
copper member
Activity: 224
Merit: 3
While decentralization remains one of the key features and attraction to cryptos, some level of regulation in crypto trading and in other aspects of the industry may actually help in no small way by
1. Breaking the barrier to entry for onlookers
2. Increase confidence of the larger public
3. Reduce manipulation in markets such as pump and dumps and bitcoin price manipulation
4. Adoption of cryptos as mainstream by most nations of the world becomes more likely etc
Pages:
Jump to: