After banning cryptocurrencies in April, it is emerging that India is considering reversing this decision. The government position is that they banned crypto without much research on it. While this may look unique to India, it is part of something bigger that is happening in the crypto market. After a series of bans on crypto some months back, governments across the world are now changing tune. India’s change in tune comes after South Korea announced a few days ago that they were looking to legalize ICOs. China seems to be changing tune too, and has even come up with a list of some of the best cryptos.
This change in sentiment at government level can only mean one thing, crypto is going mainstream and the only option governments have is to accept this reality. That’s why governments that were hitherto opposed to this technology are now looking for ways to accommodate, and regulate it, before they are left behind.
It is also pretty interesting that change in government sentiment towards crypto is coming at a time when institutional players are also taking a keen interest in crypto. In the last week, we have witnessed the launch of two crypto index funds. These funds are meant to make it easier for institutional investors to get into crypto without having to cherry pick coins. Actually, the Coinbase index fund is so structured for institutional players that only investors with $250k and above are eligible to invest in it.
All these things should get investors excited about the crypto market even though the market is underperforming right now. That’s because the market is at a point where institutional money is about to flood the market, and push prices to levels never seen before. Institutional money only gets into markets where they know their money is secure. No pension fund or any other big money investor would put money in a market where they are not sure about the regulatory certainty of the market they are getting into. This explains why it’s mainly retail players that have been in the crypto market up to this point. But now that the conditions are right for institutional players both from a political perspective, and in terms of infrastructure, this market is about to experience a massive injection of capital to levels never seen before.
These are perfect conditions that could see the crypto market reach a market capitalization of over $1 trillion. That’s why the current market condition should not make you panic. The best thing would be to take advantage of the current market conditions and stock up on some good cryptos. There are lots of good projects that are trading at massive discounts, and offers a huge potential to grow, once the market starts to rise. Cryptos like NEO (NEO) and Ethereum (ETH) that have a huge potential to transform the internet as we know it, are currently trading way lower than their all-time highs. The opportunity is huge!