By
Temitope Olatunji
April 26th, 2024
Sen. Tester thinks the only possible use of cryptocurrency is the synthetic market to access global investors.
In an interview with Meet the Press over the weekend, United States Democratic Senator Jon Tester said that the most prominent crypto has not passed the smell test and should therefore be banned instead of regulating the industry. According to Tester, regulating the cryptocurrency market will show people that the industry is real. Tester noted this, including the fact that the cryptocurrency market significantly contributed to the 2022 midterm elections in the United States.
Notably, the Biden administration, through a recent White House crypto directive, gave orders to respective agencies to regulate the blockchain and digital asset industry. As such, the room for banning all cryptocurrencies in the United States is slim. Furthermore, the country is among the top users and adopters of digital assets, with a significant share in global crypto ATMs and mining hash rate.
Consequently, Sen. Tester thinks the only possible use of cryptocurrency is the synthetic market to access global investors. Notably, synthetic use has widened the traditional stock market, which was not easily accessible to worldwide investors. With cryptocurrency, anyone can trade worldwide stocks without holding the underlying stocks, thus reducing friction through blockchain smart contracts.
Future of the Crypto Market: Will Cryptocurrency Be Banned?
The cryptocurrency market has grown to a trillion-dollar industry within the first decade of existence. To a greater extent, the digital asset industry has survived several bear markets due to its ability to reduce carbon emissions. Nonetheless, worldwide regulators are still concerned with the proof-of-work (PoW) consensus mechanism used by Bitcoin and Dogecoin to secure their networks.
However, the cryptocurrency market has significantly helped reduce environmental degradation. For instance, the Bitcoin market has mainly been eating away at the Gold market. Additionally, Bitcoin use by El Salvador and the Central African Republic has significantly reduced deforestation by governments seeking to print new notes.
Thinking about how to reduce CO2 emissions from a widespread Bitcoin implementation
— halfin (@halfin) January 27, 2009
According to our latest crypto price oracles, the total market cap stands at about $840,636,323,902, with Bitcoin and Ethereum enjoying a dominance of approximately 38.7% and 18.2%, respectively. Notably, over $2.2 trillion has been wiped out of the cryptocurrency market in the past twelve months following the sustained bear market.
As such, most crypto projects are not expected to make it through the current bear market. Whereby market strategists had compared the current bear market to the post dot com era when FANG stock thrived while most did not succeed.
With the cryptocurrency market being used to unite humanity through shared interest, regulations are expected to play a crucial role in the future of digital assets.