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FTX Founder Says Institutional Crypto Adoption Will Continue in 2022 Amid Fears of Fiat Inflation

  • The SBF believes that greater regulatory clarity will push more institutional players into the cryptocurrency space.
  • Amid growing fears about fiat money inflation, billionaire investors are pouring more money into cryptocurrencies as a hedge.

Sam Bankman Fried, founder of the crypto exchange FTX is bullish on the institutional money coming into crypto by 2022. In a recent interview Monday, Jan. 3 with Bloomberg, SBF said it expects greater clarity in terms of crypto regulation . As such, it is sufficient to encourage greater institutional acceptance of digital assets in later years.

Furthermore, despite the unexpected end of 2021, the FTX founder remains optimistic for 2022. During his interview with Bloomberg, SBF said:

In essence, what makes me optimistic about the clarity of regulatory clarity in the US and around the world are what I think could be a major contributor to institutional adoption. Much depends on what happens directly from a regulatory perspective.

We have already seen increased institutional acceptance of digital assets in 2021. In addition, large corporations and companies such as Tesla (NASDAQ: TSLA) have added digital assets such as Bitcoin to their balance sheet. This put further pressure on the major financial giants to look closely at cryptocurrency investments.

SBF’s confidence stems from the fact that many large institutions have already started mass crypto adoption. He said, «Basically the big financial institutions that I have spoken to, all the big banks, all the big investment banks, all the pension funds, they are all looking at this sector.»

SBF is not the first to say that regulatory clarity will further encourage institutional adoption. Many market analysts have a similar opinion. Therefore, they believe that the regulations will be of general good to investors in the cryptocurrency market.

SBF believes that «this will be a long process, which is likely to take a few years.»

Fear of inflation drives billionaires to cryptocurrencies

More and more billionaire investors are looking to invest in cryptocurrencies. As inflation rises at a very rapid rate, billionaires are being forced to move away from liquid fiat holdings. That is why many investors are looking at cryptocurrencies as a hedge against this inflation.

Hungary-born billionaire Thomas Peterffy, worth $ 25 billion, said you should top up 2-3% of your portfolio for fear of «going fiat to Hell.» Peterffy’s company, Interactive Brokers Group Inc., started offering cryptocurrency trading to its clients from mid-2020. The company currently allows trading with Bitcoin and Ethereum, and plans to support another ten altcoins very soon.

Peterffy currently has an undisclosed amount of crypto. He maintains a fair view of crypto assets, saying that some may yield «abnormal results» while others may go to zero. “I think it could go to zero, and I think it could go to a million dollars. I have no idea, «he said.

Jean Simmons

Jean Simmons has been a cryptocurrency enthusiast since 2014 and has been dedicated to the topic on a daily basis since she first learned about Bitcoin and blockchain technology. Besides cryptocurrency, Jean studied computer science and worked for two years at a blockchain startup. At Mercayala, he is responsible for technical issues. His goal is to bring cryptocurrencies to the world in a simple and understandable way.

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