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Why does cryptocurrency need more exchange platforms?

These are confusing times for everyone both mentally and financially. While the stock market is crashing and governments are spending trillions trying to salvage the situation caused by the coronavirus, cryptocurrency has been sort of hanging in the air. At the beginning of the year, Bitcoin, the most famous and mainstream cryptocurrency out there, almost reached its $10k mark. The year was looking pretty good for the entire industry with hopes that maybe bitcoin would finally surpass it’s newest high, even though the cryptocurrency has been struggling over the last months in 2019. This all took a turn when the COVID-19 outbreak started to spread around the globe, affecting the stock market and economy in general.

As the world is trying to stop these changes from happening or at least make the blow as easy on the financial sector as possible, Bitcoin and cryptocurrencies in general, have been acting strangely. While the initial drop made bitcoin hit its lowest mark this year, leveling out at around $7000, this raised the question of trading platforms for cryptocurrencies and whether or not they could boost the industry’s transparency and its management. Besides that, it’s easier to put preventative measures in place when there are clear platforms for trading and they aren’t scattered around the world, offering services to very limited crowds.

The need for regulated exchange platforms 

Crypto platforms are very similar to the stock markets ones, with similar tools monitoring and making the transaction easier, have proven to make industries more resilient. And as the crypto world is slowly becoming more accepted, not only by a wider range of users but by more establishments, the need for such platforms is becoming a lot stronger.

While most are probably looking to the U.S for solutions, actually more action is definitely coming from Europe this time around, which is a surprising development, considering the region’s passive presence in almost any other type of tech progress. BitBlinx Exchange is a centralized exchange launched in summer 2019, with a proprietary platform that focused on security.  It is regulated by the Estonian financial intelligence unit. It currently offers Crypto but also Fiat deposits through SEPA transfers.Unlike many other exchanges, it offers support in several different formats, apart from the rather typical Support Ticket, it also offers instant support through its Live Chat and also on its Telegram group where a community is being built. Additionally, they are soon launching its own wallet and payment gateway that will not only allow fiat withdrawals with BB Pay but also give access to crypto to many merchants.

This is just the one example of a platform enhancing the qualities that cryptocurrencies are most often valued for.  As the outbreak highlights the flaws in many industries, financial industries in the first place, platforms like BitBlinx will become increasingly important to make cryptocurrency development sustainable.

The uncertain future of crypto

In these trying times, when the changes are happening at a rapid speed, these crypto platforms that focus on security will be the go-to for many people trading right now. 

While the unregulated nature of crypto was often the selling point for the cryptocurrencies it looks like the times are changing. While we still might need to prioritize decentralization over security in the future, it looks like for a while we’re stuck in this reality.

Financial platforms also need to play their role in minimizing the damage as much as possible. While the major drop in bitcoin prices is starting to slowly pick itself up, the reliance on safe and secure platforms could make the process faster. If we want cryptocurrencies to be treated as regular payment methods with shops around the world accepting them as legit transactions and offering these options in more of their facilities, the legitimacy that these regulated trading platforms add to the industry is invaluable.

This is why we should be following the example of the Estonian model that has embraced the crypto world but added a few tweaks to keep things monitored. It still needs to be said that Estonia can not be taken as a representative of the situation across Europe. While definitely not the strongest economy in the region it might just be the most tech-savvy, relying on e-governance more than any other country. There is a lot to be learned about how Estonians have handled their technology and used it to their advantage. It looks like they managed to do it with crypto too.

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Konstantin Rabin

Konstantin Rabin

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Kontomatik

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18 Aug 2015

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Warsaw

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This post is from a series of posts in the group:

Cryptocurrency Insights

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