Retail Money Will Pour into Crypto Exchanges Once This Occurs
Not the only factor, but a major one.
Non-members can read the full story here.
Centralised crypto exchanges have expanded their operations and global reach over the years to accommodate the changing trends in the crypto market.
With over 420 million crypto users worldwide — representing ~5.1% of the global population — exchanges will continue to onboard hundreds of millions of new people in the coming years.
There’s one factor that will boost both the number of users on centralised exchanges and the quantity of money held on (thus, transacted through) these platforms.
100% crypto insurance…albeit with some caveats.
I believe it will eventually happen, but conservatively speaking, it’s still several years away.
There are two major reasons for this. The insurer/underwriter needs to:
1) Have enough confidence in the exchange to ensure it is in a sound-to-strong financial position, has the customers’ funds backed 1:1 (proof of reserves) and has implemented the best security measures available.
2) Be 110% sure that the blockchains underpinning various coins and tokens can withstand the test of time, not to mention advanced network threats…
