Institutionalization, the removal of volatility and functioning products will allow us to fully realize the potential of crypto-currency assets. This is stated in the report of the international audit company from the “big four” of KPMG, sponsored by Coinbase, Fundstrat Global Advisors and Morgan Creek Digital.
Analysts at KPMG came to the conclusion that from 2017 cryptocurrencies are competing with the traditional asset classes from the point of view of investments. In 2018, the competitiveness of digital currencies have strengthened new financial mechanisms, in particular: the platform security token and stabilini. However, crypto-currencies stand in the shadow of traditional assets with world market capitalization in excess of $300 trillion, the report said.
The next step for building trust and scaling of kriptonyte is the institutionalization, according to analysts KPMG. In their view, now coming into the industry of institucionales prevent legal and tax uncertainty, and lack of accountability from cryptocurrency companies before regulatory bodies.
The experts added that on the way to a wide adoption of a new asset class is the gap between their use and existing development. According to KPMG, many of the existing 2,000 scriptaction no functional solutions associated with them.
It is noted that additional barriers that need to be addressed are the lack of a reliable system of clearing calculations and problems during the forks of the cryptocurrency.
The report analysts also provided are the main use-cases for cryptocurrencies. For example, bitcoin can act as a digital storage of value, Ethereum — as a tool to attract funding and Litecoin will come in handy for a quick and cheap p2p-sharing.
In addition, due to scriptactive tokenization of the economy can become one of the most effective innovations in the industry.
“The ICO represents a significant innovation that provides new methods to more effectively attract capital, with the participation of a much wider groups of investors”, — the report says.
Experts KPMG noted the importance of KYC procedures when performing transactions with cryptocurrencies. However, the tools for anonymity (for example, evidence with zero disclosure, or ring signatures) do not necessarily mean that the transactions are illegal, they added.
To scriptactive can be classified as a currency, they should match the main functions of money is to be a unit of account, a means of accumulation and exchange.
“That cryptocurrencies were a medium of exchange, they must be a means of accumulation. So cryptocurrency is a means of accumulation, it is necessary to eliminate their speculative nature. However, many of the creators of cryptocurrency quite pleased with the rapid growth of their coins. While at least one cryptocurrency will not meet all three criteria, they cannot be considered currencies in full”, — stated in the report.
We will remind, in the opinion of the Creator of cryptocurrency Dogecoin Jackson Palmer, institutional money are a danger to kriptonyte.
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