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Why institutional adoption of blockchain is essential

Institutional adoption of blockchain is a major driving force in the blockchain industry today. The importance of this process lies in the changing attitude of regulators towards cryptocurrencies and blockchain in general: once such tools are adopted and approved, faster institutional adoption and application of the cryptocurrency market will begin.
Why institutional adoption of blockchain is essential
Why institutional adoption of blockchain is essential
Blockchain-based products become mainstream
Blockchain-based products become mainstream
Institutions now understand and have more confidence in the crypto environment
Institutions now understand and have more confidence in the crypto environment
Actions by regulators determine how consistently the industry evolves
Actions by regulators determine how consistently the industry evolves
Institutional investors have long been interested in crypto market, but the regulatory framework for large-scale investment is still lacking.
Early stages of adoption
The number of users of crypto has already surpassed 100 million. This number is expected to exceed 1 billion in 2024 and increase to 4 billion by 2030. This means that blockchain-based products will become mainstream.

In addition to the overall upward momentum, market capitalization and infrastructure reflect the continued maturity of the institutional crypto market. Prior to 2018, the main players in the market were either private investors or small funds. After the bitcoin price rose and the capitalization of the crypto market increased, many large players began to enter the market. Their arrival accelerated the development of a transparent infrastructure for the exchange and storage of cryptocurrencies.

Now the capitalization of the crypto market has increased a hundredfold, the infrastructure is much more developed, and institutions understand and have more confidence in the crypto environment.
Blockchain-based products become mainstream
Blockchain-based products become mainstream
Institutions now understand and have more confidence in the crypto environment
Institutions now understand and have more confidence in the crypto environment
Actions by regulators determine how consistently the industry evolves
Actions by regulators determine how consistently the industry evolves
How the blockchain is evolving
Thanks to technological advancements, the world has become much more interconnected and flows of data have accelerated. The adoption of blockchain is similar to that of the internet, only faster. This is mainly because the internet required networks to be built, which is a rather long and capital-intensive process. What's happening in the blockchain segment is largely based on existing fundament that will serve the rapid proliferation of the technology. The flow of capital and the scaling of projects are faster because expensive development is not necessary.

The blockchain network already has analogs to banks, decentralized products based on derivatives, and products that help with asset management. There is a copy of what we have in the centralized financial system, but with the advantage that the industry gets from the use of blockchain technology.
Large-scale adoption is on the way
According to the Fidelity survey, about 70% of institutions plan to invest in cryptocurrencies by the end of 2022. 90% of survey respondents said they would be willing to invest some of their capital in digital assets over the next 5 years.

As the adoption of this technology increases, so does the volume of investments. However, until there is a comprehensive and global regulatory framework, blockchain remains a risky segment as it develops in a regulatory vacuum. Future actions by regulators will determine how consistently the industry evolves. Once the issue is resolved, the big capital flow will begin to enter the cryptocurrency market more actively and the development of technology will reach its first peak.
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