Cardano<\/a>, Ether, and Bitcoin, according to a strategist, might become mainstream cryptocurrencies.<\/span><\/p>\nAmy Arnott\u2019s thoughts<\/h4>\n
In a recent interview with the Insider, Amy Arnott, a cryptocurrency-focused portfolio strategist at Morningstar, discussed her thoughts on crypto regulation, ether, and cardano.<\/span><\/p>\nBecause many cryptocurrencies do not generate currency, Arnott believes it is difficult to identify a fair price for them. However, she noted that because ether is used to power decentralised finance (defi) transactions and enable non-fungible tokens, it has an inherent price (NFTs). The strategist went on to say that because ether is utilised as a utility, it should give some form of a price floor, but he didn\u2019t specify what that should be. Many people talk about the network effect, which states that when these currencies are used more frequently and there are more interdependencies and connections, they become more valuable.<\/span><\/p>\nCardano (ADA) is also a potential cryptocurrency, according to Arnott. <\/span>It is a protocol comparable to Ethereum in that it offers a wide range of technological applications. Cardano, as well as various stablecoins, have sparked a lot of interest.<\/span><\/p>\nThe Morningstar strategist continued to express her thoughts on institutional cryptocurrency adoption. \u201cWhat\u2019s remarkable is that institutional investors have been significantly more inclined to acquire cryptocurrencies and consider them as an investment asset in the last year or so. As long as this tendency continues, other cryptocurrencies will become more mainstream,\u201d she said.<\/span><\/p>\nShe stated that a diversified cryptocurrency index fund in the form of an exchange-traded fund would be ideal (ETF). However, the Securities and Exchange Commission (SEC) in the United States has yet to approve any cryptocurrency exchange-traded fund (ETF), making it \u201cvery difficult for mainstream investors to obtain exposure to cryptocurrencies.\u201d Regulatory risk is a huge issue, according to Arnott, and it\u2019s been the driving cause behind a lot of the volatility in recent months. It would be a major setback if governments around the world imposed restrictions on cryptocurrency in general or bitcoin and ether in particular.<\/span><\/p>\nWhat are your thoughts on the Morningstar strategist\u2019s remarks? Please share your thoughts in the comments box below.<\/span><\/p>\n\u00a0<\/p>\n<\/div>\n
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