Crypto Analyst: Regulations Will Cause Problems For Privacy Coins

According to a widely followed crypto analyst, regulations will hold institutional investors back from entering one specific crypto sector.

The crypto analyst from YouTube channel InvestAnswers explains why he has doubts on the future for privacy coins – crypto assets that do not reveal the transaction information, enabling user anonymity.

“For privacy coins to succeed, they need to raise institutional money. I know the people out there in the audience believe that things like VCs (venture capitalists) are bad, but if VCs are bad, there would never be anything like Microsoft or Hewlett-Packard or Google or Facebook or Tesla or SpaceX.

These are the people behind all these successful companies, and the problem with secret coins is they will always be viewed under a very high regulatory scrutiny, and therefore, institutional investors will not invest…

I do believe there’s a need, but as regulation comes, these are the first things that are going to get quashed. There’s no price upside as well and looking at the tokenomics as well of SCRT token, I wouldn’t touch it: no max supply, very little distributing. It doesn’t look like a good thing.”

Regarding the leading digital asset, Bitcoin, the analyst notes that BTC is still widely considered a risk-on asset.

“It’s tied to like a tech stock, and we are seeing that exact behavior. Like with the Bitcoin conference going on right now, I think people are expecting huge breakthrough news and if that doesn’t happen, there’ll be a lot of disappointment. I also see a lot of money flow into different assets. Bitcoin isn’t the big black hole. It is the hardest, most pristine asset on Earth, but there’s so many distractions now to place your money.”

At the time of writing, BTC trades $39,470, down 15% on the weekly chart.