Bitrabo Editorial
WisdomTree CEO Jonathan Steinberg recently spoke with CNBC’s Mark Quintanilla, stating that crypto is on its way to becoming mainstream in the upcoming years. This assertion is backed by former US President Donald Trump’s positive remarks at a recent Bitcoin conference, highlighting the vast potential for investors.
Unlocking Mainstream Adoption
Steinberg emphasized that Trump’s enthusiasm towards crypto is appealing to retail investors. Trump’s commitment to providing regulatory clarity for Bitcoin and other cryptocurrencies as an asset class is significant for a market that has faced regulatory challenges from the Securities and Exchange Commission (SEC).
Regulatory certainty is crucial for widespread crypto acceptance in the US, where adoption lags behind countries like Vietnam, Nigeria, and India, as per Chainalysis. Steinberg also noted Bitcoin’s performance, surpassing private equity in the long run.
Despite the growing interest in Bitcoin and crypto among retail investors, there are still obstacles to overcome before achieving full mainstream recognition.
Complex Crypto Jargon Hinders Mainstream Recognition
Quintanilla pointed out that the intricate terminology prevalent in the crypto sphere, such as “halving,” “decentralized finance,” and “real-world asset tokenization,” can intimidate potential investors. Steinberg highlighted the skepticism of regulators towards crypto, hindering broader adoption and causing confusion among passionate retail investors.
Steinberg mentioned that while crypto has gained some acceptance, true mainstream adoption is a work in progress. He noted the emergence of crypto Exchange-Traded Products (ETPs) in Europe and the US as a step towards mainstreaming the asset class.
Reflecting on WisdomTree’s history of launching its first ETF two decades ago, Steinberg acknowledged the initial confusion surrounding new technologies. However, as retail investors grasp the fundamental principles of crypto, term normalization is expected to follow.
Featured image from New Digital Age, chart from TradingView