The Winds of Change Have Begun to Blow for Cryptocurrencies in Malaysia
Despite the recent slump the crypto market has experienced, industry analysts believe that digital currencies such as bitcoin, have the potential to be aggressively embraced by local investors in the next financial cycle, the Malaysian Reserve reported on November 21, 2018.
Malaysian Investors Shouldn’t Be Quick to Dismiss Cryptocurrencies Just yet
The downturn the crypto market has taken during the second half of November 2018 has definitely attributed to the negative sentiment towards the industry. However, despite the fact that investing in crypto might have lost its charm for many novice traders, it would be a mistake to write off digital currencies just yet.
Many industry analysts believe that cryptocurrencies, especially bitcoin, are going to be embraced by investors within the next financial cycle, as both large and small players are eagerly waiting for more government regulation.
According to a Malaysian Reserve report, this seems to be the case in Malaysia, where the majority of industry players remain calm over the recent bitcoin dive, describing this move as a mere transition phase.
However, Aaron Ting, the vice president of Malaysia Investors’ Association, acknowledged that unstable prices did hamper the cryptocurrency market this year. He explained that what we have seen towards the end of 2018 was the market’s peak, while 2019 will be its decline, which leads to a period called the “trough of disillusion.”
“I believe we are in the middle of this period and it will recover from here eventually, before experiencing a slower ascent,” Ting said, using the Gartner Hype Chart Cycle, to gauge the movement of digital coins.
The Ups and Downs of the Crypto Market Are Nothing New
Ting, who is also the secretary of Access Blockchain Association Malaysia, said that the changing phases are nothing new, adding that every new technology in the past few decades has experienced the same ups and downs. What is different, though, is the speed at which the phases come and go.
“In today’s world, due to the Internet and social media, the hype chart cycle tends to be compressed,” he told the Malaysian Reserve.
He cited the example of 3D printing, saying that despite the fact that the technology was introduced decades ago, it took until recent years for it to be widely adopted.
The rapid development of crypto and blockchain technologies indicates that the industry is still in its early, prolific days, and it seems that the country of Malaysia has made sure it had opportunities for it open.
Ting said the government’s step to regulate cryptocurrency may result in more industry players to venture in the market. In order to achieve that, the Malaysia Digital Economy Corp is currently looking at Singapore when it comes to initiatives involving cryptocurrency.
He believes it is the right time for the distributed ledger technology to be adopted by Malaysia, replacing the currently what he described as “outdated” financial systems that lack both transparency and efficiency.