Bitcoin’s Existential Threat – Bitcoin USD (Cryptocurrency:BTC-USD)

After coming through the 2018 bear market relatively unscathed, the biggest threat to cryptocurrencies now appears to be regulation. Regulation of cryptocurrencies globally is developing but is still minimal in comparison to traditional financial markets. Increased regulation of cryptocurrencies should be viewed as a positive as it will reduce uncertainty and increase protection for investors, helping to legitimize cryptocurrencies as an asset class. Currently, there is minimal protection, and unsophisticated investors can easily be taken advantage of or enticed into investment vehicles without fully understanding the risks. Investors who view cryptocurrencies primarily as a means to avoid government control are likely to be disappointed by regulatory developments as governments will seek to ensure cryptocurrencies are not used to finance crime or avoid taxes.

The complexity of cryptocurrencies and their rapid adoption by a wide user base have left regulators playing catch up. So…