“Bitcoin is a trust protocol when you break it down. It solved the long-standing computer problem of how to build trust over the internet without a third-party intermediary for money,” Ansty said. It may begin to see how bitcoin can be worth much more than today’s US$1-trillion market cap, as it fundamentally changes the way the internet and money work.”
Canada’s Potential as a Bitcoin Destination
As the birthplace of the world’s first bitcoin ETF, Canada certainly has a significant role to play in driving money into the bitcoin space. Ansty says the country’s well-known regulatory system and capital markets are the seeds for bold ventures such as junior mining companies, which makes it more open to crypto exchanges and bitcoin-related companies, including LQWD. It also provides the right mix of risk appetite and market structure to enable bitcoin adoption through more familiar vehicles.
“We have seen widespread acceptance by the Ontario Securities Commission, the British Columbia Securities Commission and all these regulatory bodies, which is exciting to see,” he says. “Some of these banks and other big players in the industry will probably do more financialization of the bitcoin offering. This will make it easier for advisors to give some exposure to their clients’ portfolios based on their client’s risk.”
For investors as well as financial firms that hire advisors, he says regulatory clarity will go a long way. This will help clarify many pending questions about financial institutions’ custody of bitcoin, or what they can do with accounts that hold the cryptocurrency. In favor of self-directed investors, Ansty says that more and more exchanges are being recognized and licensed by securities regulators – BitBuy and Netcoin have already gained those approvals – making it easier for them to diversify the bitcoin market. It’s easy to bring.
Even with more guidance and development from regulators, financial institutions could be held back by the enormous volatility in bitcoin’s performance. But Anstey quickly pointed out that volatility is relative: It may be too hot for North Americans who deal in the dollar, but for someone living in Turkey or Lebanon, where national currencies are falling at a devastating pace, bitcoin is one Could be a life-saving option.