Crypto-assets, as well as blockchain, have seen a massive boost in popularity over the last 10 years. Owing to the decentralized characteristics of blockchain, the payments and delivery industries have changed significantly. In the MENA region, crypto-assets are now a powerful force, allowing both institutions and individuals alike to change the landscape of the industry in a powerful way.
Crypto-assets have cultivated a reputation for being long-term, highly diverse assets. Now key parts of any portfolio, the trading of these assets is a profitable, short-term strategy. What separates the market from other asset classes is frequent movements of price. A liquid strategy in trading is highly lucrative.
Despite growing popularity in the MENA region, there are instances where people have lost a lot of different sums of assets or cash, because the exchange they traded on was one which was both not regulated and didn’t have the right structure in place to protect people’s investments.
All this did was emphasis the importance of a regulated exchange. It has all the infrastructure and government supervision to sustain a proper operation. The rights and assets of investors are protected thanks to strong relationships with banks, resulting in ease of access and competitive fees.
Something which you have to realize about the crypto-assets industry is that it is still quite young. In comparison to the financial services sector we’re all used to, it is pretty misunderstood.
A lot of the confusion stems from Bitcoin. Contrary to widespread belief, Bitcoin is not the only crypto-asset out there, or the only one of value. It may well have a large market share, but other options like Ethereum are popular too.
Thankfully, there are opportunities for anyone who wants to take full advantage of the crypto-asset industry. The MENA region has shown a particular enthusiasm for learning about these options and making investments, which means that the industry is slowly progressing towards a more common state. The main focus at the moment is regulating the assets and protecting people from unforeseen losses.
Globally, we’re beginning to see that there is a widespread consensus that the crypto-asset industry is an important one. Governments and investors alike have begun to embrace the idea on both a retail and institutional basis. Corporations like Mastercard have agreed that they would start to move crypto-assets across different payment networks. Other investments from companies like PayPal and Tesla have agreed to take similar actions, the latter most likely due to an enthusiasm on the part of Elon Musk.
Crypto-assets have become a popular form of payment and their use has become more widespread across the MENA region. It’s only a matter of time before they become properly structured, and a suitable support network is put into place. The main hesitation on the part of big companies stems from a distinct caution at the lack of a support structure. The risk of losing substantial assets with no reason is understandably concerning, so a structure would need to be implemented.