It has been more than a decade since the cryptocurrency industry has been around. From 2009 until 2021, the cryptocurrency industry has come a long way and it is constantly growing bigger. However, the cryptocurrency industry has been able to make the progress as per its true potential. While the analysts make several and different comments about cryptocurrencies, the majority of them are unified on a particular statement. That statement is related to the only hurdle in the growth of the cryptocurrency industry.

Current Situation of Cryptocurrency Market

Since 2009, the cryptocurrency industry was growing at a slow speed. However, the industry picked up and sprinted in late 2020 when mainstream institutions started adopting cryptocurrencies in various ways. This is when the cryptocurrency industry emerged and started giving a taste of its true potential. Back in early 2020, the total user base for cryptocurrencies was around 35 million but now the cryptocurrency industry has more than 300 million users. Prior to mid-2020, the total number of cryptocurrencies was around 5,000 and now, the industry has more than 10,500. When it comes to the market capitalization of the overall crypto-industry, it is currently at $1.36 trillion.

Is this the Max the Cryptocurrency Industry has grown?

If you think that this is the all-time high the cryptocurrency industry has achieved, then you haven’t been following the cryptocurrency industry at all. At present, the crypto-verse is experiencing an overall bearish trend that has almost cut its market capitalization into half. According to data, the all-time high market capitalization of the crypto-verse recorded in mid-April of 2021, was $2.4 trillion. However, the entire cryptocurrency industry ended up plunging when Bitcoin (BTC) took the fall around the same time.

What is the Major Cause behind Cryptocurrency Industry’s Sudden Downfall?

Until mid-April, things were going smooth and very well for the entire cryptocurrency industry, until BTC’s carbon emission concerns were raised. Just because BTC is the driving force behind the entire crypto-verse, it dragged the entire crypto-industry down when its price plunged when the regulatory authorities rejected it due to the Carbon Emission problem. At that time, Bitcoin price was at an all-time high of $64,000 per BTC. At the time of writing, Bitcoin is struggling to keep its price above the $32,000 per BTC mark.

The Real Reason is Lack of Regulations

While the overall cryptocurrency community is blaming Bitcoin for dragging down the entire crypto-verse, the real reason behind the cryptocurrency industry’s downfall is the lack of regulations. In order for any industry or company to operate, where it can offer a safe and reliable environment to its users, it needs to be regulated. This means that in an uncalled-for scenario, the regulatory authorities would back you if you were to face any problems. If a company is not regulated, then no one would trust it or the services it offers. Even if the services and benefits the company/industry offers are very beneficial or advantageous, they wouldn’t be able to bring in much user base for them.

This is because of the lack of regulatory infrastructure being practiced and adopted by the particular industry. Unfortunately, the cryptocurrency industry is facing the same problem, as more than 90% of the industry does not adhere to regulations. This is the reason why, if one crypto takes the plunge, the rest of the investors investing in other crypto start selling another crypto as well. They believe that the entire cryptocurrency industry would do a rug pull, which means scamming the investment community.

Regulations Would Help the Industry Grow to New Heights

Ever since 2020, regulatory authorities from all over the world have stressed the fact that the crypto-verse lacks regulatory infrastructure. They continue communicating to their locals not to invest in crypto, because of its volatile and unregulated nature. If the cryptocurrency industry becomes fully regulated, then the industry would be able to gain the full trust of mainstream institutions. Once that happens, the entire industry would be able to grow as per its true potential.

Why must you Proven Regulated Crypto-firms over Unregulated Crypto-firms

If you are also planning to invest in cryptocurrencies, then you must also go towards regulated firms. This would mean that if a crypto-brokerage ends up losing your funds, then regulators would be able to help you with that. If it is an unregulated firm, then there is nothing that the regulatory authorities would be able to do to help you.

On the other hand, the regulated firms operate under the supervision and regulatory guidelines implemented by the regulatory authorities. This means that in worst-case scenario, the regulatory authorities would be able to jump in and cover you. If all crypto exchanges and other crypto entities adopt cryptocurrency regulations, then the cryptocurrency industry would be unstoppable.