A Blockfi manager says “this year has been a huge year for mainstream consumer demand for crypto”. Given that Fear of Missing Out (FOMO) will be a big driver for investors, management expects some regulatory clarity over the next year.
Crypto FOMO will drive investments in 2022
Flori Marquez, Co-Founder of Blockfi and Senior Vice President of Operations, discussed the future outlook for cryptocurrencies through 2022 in an interview with Yahoo Finance Live on Friday.
Blockfi was founded in 2017 and provides lending services to markets with limited access to simple financial products. The financial services company specializing in crypto is institutionally supported by investors such as Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, Sofi and Coinbase Ventures.
“It’s been a huge year for crypto,” she began. She admitted that the Bitcoin price had fallen slightly, but put this into perspective: “If you look at the returns for Bitcoin from year to year, Bitcoin is as of today 112% behind. And if you compare that to gold and S&P, those are negative 4% and 24%, respectively. As a result, it has been volatile year after year for the past 30 days. But it’s still a great investment for people who participated a year ago. ”The executive described:
I can say that this year has been a huge year for mainstream consumer demand for crypto.
“We have seen tremendous advances in US consumer interest in this type of asset class,” she added.
Regarding the outlook for the cryptocurrency market through 2022, she noted that “If we look at the Blockfi numbers alone, we had 10,000 customers in the last three years at the end of the year [first] Year, 100,000 customers at the end of the [following] Year, and this year we will have over 500,000 customers by the end of this year. “
The executive said, “Looking ahead to 2022, I really think we’re going to see three things,” adding:
The first is that for the first time we will see more consumers in the US entering the market. And I think a big driver will be FOMO [fear of missing out].
“So we’re going into the holiday season. People will be talking about the new things they have invested in this year. And I think that crypto has become a little more digestible for the average consumer than it was five years ago, ”she said.
Second, she believes we will see “talent recycling” and notes that many people are changing jobs because of the Covid-19 pandemic. She added that the crypto and fintech space has been a huge draw for people.
Finally, she believes that we will see some regulatory clarity in the crypto space in the next year, and says:
I think we’ll see some regulatory clarity in 2022 … Much work has been done in terms of working with regulators to understand what needs to happen in order for this sector to continue growing. And I hope we’ll see that next year.
“I understand that regulators have two main issues to focus on right now,” she continued. “They watch out for consumer protection and also focus on keeping innovation in the US.”
The executive concluded, “I also believe that the clarity of regulation will allow many crypto-building companies to build with more clarity, which will help us hopefully be safer for consumers in the long run. And it will help with that mainstream adoption too, as consumers will feel more confident knowing that regulators are doing this too. “
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Source: Crypto News Austria