Every day we see some of the cities, nations accepting the crypto in their system. Each year we see some sort of the laws are coming out in and against the crypto. So if we ignore the things related to the cryptoverse and instead focus on our own benefit. What are we losing? What are we need to watch out for in near future?

I want to discuss how the regulations are going to be affecting our immediate future. And what this means for the centralized and decentralized finance debates. So check out my views below.

Regulations Will Hurt New Tokens (Both good and bad)

New tokens on Ethereum are coming like some worm is laying eggs. Like literally every random use case is being promoted by the companies. VCs and the big firms are losing the money on such tokens, which is a bad thing. You may notice that good things with regulations would happen if the tokens are watched. Especially those tokens where the team is showing their face and are applying for VC funds and the transparent business.

In case of the decentralized projects, that would be a problem, where the project developers would have to show the face, show their business etc. But the thing is that a lot of non regulated projects are out there which eventually make money off the transparency through other means. Which may or may not be tokens we may want to use as a consumer. So for projects like monero or tokens of that type on Ethereum would be facing issues.

So the regulations have both good and bad effects on this.

Regulations Will Hurt Decentralized Stablecoins

Japan recently came up with a bill that there will be stablecoins only from the places which are transparent like banks etc. So they want to avoid the similar situation like the LUNA. Which is reasonable but it goes to show you that decentralized stablecoins are going to take some hit. The reason being the centralized exchanges like binance, houbi, bittrex etc would be devaluing the decentralized coins even more for consumers.

Another thing is that stablecoins which are decentralized and trying to maintain the peg would have to worry about the whales from the centralized world. A lot of centralized people with some agenda often buy the decentralized coins and destabilize them often in the market by shuffling. So they can do the same to the stablecoins.

So the market will go through some changes as the regulations come in and affect the stablecoins along the way.

Regulations will make Crypto as an asset and not one ticket to retirement

I remember the time when the Bitcoin was not close to dollar and people wasted it buying the pizza or other things. And then I also witnessed the time when BTC hits the high amount. The thing is that the ticket to retirement phase is going to appear randomly in the market. You won't be seeing that often there. Like you accumulated 10K worth of BTC now and may get chance to see it high enough to sell it and retire.

Each place in the world requires different amount for retirement. And we all know from experience that in retirement you need income source that is moving and something static amount in the bank as saved money just won't cut it there. So you can think of it as an asset and not think of it as some sort of the ticket to the wealth forever retirement.

I feel with the regulation we are going to see a lot of things changed. A lot of recession effects would change the expectations from the crypto. We are going to see some strong adoption and we are going to see how the crypto asset would make sense for us if we are trying to secure our life from this point onwards.

What is your speculation of the future where a large percent of the crypto is regulated?