Cryptocurrency exchanges in the U.S. will be shunned by investors and the Biden administration will force the multi-trillion dollar sector of the future of money away from America, affirms the boss of one of the world鈥檚 largest independent financial advisory, asset management and fintech organisations.
The comments from deVere Group鈥檚 CEO and founder Nigel Green follow the U.S. government signing the $1.2 trillion infrastructure bill into law, weighing on the shares of publicly owned, U.S.-based exchanges.
Why? Because within the infrastructure spending package is language increasing the tax reporting requirements for cryptocurrency transactions. This has been fiercely opposed by the digital currency sector and investors.
Mr Green says: 鈥淲e鈥檝e seen the U.S. infrastructure bill get signed, which initiated a sell-off from traders who are worried about increasingly levels of regulation and taxation.
鈥淭he inclusion of the extra reporting clauses for crypto is a huge miscalculation from the Biden administration.
鈥淲ith additional reporting, which is onerous and costly, many investors will not choose a U.S.-based cryptocurrency exchange. They will simply go somewhere else; to another exchange, based away from the over-reach of the U.S. authorities.鈥�
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He continues: 鈥淎nd as such, this extra burden will likely move a large part of the growing cryptocurrency industry itself out of the United States. 听This is a sector now worth more than $3 trillion 鈥� and it can only be expected to expand exponentially.鈥�
Despite recent price drops in Bitcoin, after the fresh all-time high, Mr Green believes that inflation, amongst other factors, will help keep driving prices higher for the short to medium term.
鈥淚t鈥檚 a global issue as businesses have been raising prices as supply chain bottlenecks and a shortage of qualified workers push up costs.
鈥淎nd it鈥檚 one that is likely to last until at least the beginning of the second quarter of 2022, when pressures should start to ease.
鈥淎gainst this backdrop, and amid some peaks and troughs along the way as markets never move in a straight line with traders taking profit, we can expect to see the price of Bitcoin and other major cryptocurrencies continue their upwards trajectory.
鈥淏itcoin is widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.鈥�
This 鈥榠nflation shield鈥�, says the deVere CEO, will bring to the crypto market growing investment from major institutional investors, bringing with them capital, expertise and reputational pull 鈥� and further driving up prices.
The deVere boss concludes: 鈥淗istory will show that the inclusion of additional reporting for crypto transactions in the U.S. infrastructure bill was a huge error.
鈥淚t will have the effect of investors choosing non-U.S.-based exchanges and moving much of the crypto sector 鈥� the industry of the future of money 鈥� out of America.鈥�
