The time has come, though, at this point, the arrival is anything but unexpected. Recent developments coming from Brazil have allowed for the trading of the world’s biggest cryptocurrencies, Bitcoin and Ethereum, alongside the various other securities and fiat currencies offered by the traditional exchange.
With this development, it’s important to understand just how big a deal this is, what it means to those uninitiated, and what it could mean for the future of Bitcoin, Ethereum, and cryptocurrencies as a whole.
In the most simple of terms, a brokerage is an institution which acts as an intermediary between a buyer and a seller. In the case of specific forms of trading, this is especially important and desirable because of the complexity which often comes with direct communication. In larger markets, there can be thousands who want to sell, and thousands who want to buy, with transactions, often occurring in great quantity and with great haste.
“Charging Bull” (CC BY 2.0) by Prayitno / Thank you for (12 millions +) view
The average person is simply not going to have the time to put in the effort and research not only into the current state of affairs but the market trends and future potential. Add this on top of the fact that there can be cases of fraud within these systems, and the necessity for those fully engaged with a financial infrastructure to act as guides along the way becomes undeniable.
This is also due to the individuality which stands between the different forms of traded currencies. Stocks and fiat currencies, for example, operate in different manners and carry with them different legacies and market trends, so it stands to reason that engagement in these markets would require different understandings and skillsets.
This is doubly true when dealing with cryptocurrency. As a newer entry into the market and one with considerable design and operational differences than the traditional, there is a strict need for brokerages which specialize in crypto like Bitcoin to offer the most reliable service.
Brokers here need to understand peer-to-peer digital transactions, the blockchain, and how to avoid the pitfalls which endanger so many newcomers. While connected, this market effectively works as a new arm of finance, thus the need for practiced understanding and control.
With the news of Grupo XP, Brazil’s largest independent brokerage, opening itself up to Bitcoin and Ethereum, an important new stage has been set in the proliferation of one of the most exciting recent developments in finance.
Crypto, for a variety of reasons, has often been underestimated. Considered a flash-in-the-pan, or sometimes even less than that, this mainstream acceptance by a major market helps to consolidate the entire crypto market into a much publically viable whole.
As for the reasons why this development occurred, given the current information, it appears to fall to two main elements. The first is the evolution of crypto into a wide-spread and highly desirable form of currency. With value which is undeniable, the interest of major financial institutions was inevitable, which help set the stage for even further evolution and growth.
“Bitcoin vs. Ethereum” (CC BY-ND 2.0) by QuoteInspector
The second element which brought about this adoption comes from officials at the Brazilian Administrative Council for Economic Defense (CADE). After receiving many complaints from those already heavily invested in the crypto market, officials at CADE thought it unreasonable that such a proven market was left by the wayside, and saw this as an opportunity to expand both their overall market and their national visibility as a monetarily progressive nation.
The last few years have seen crypto increasingly involved with the direct purchases of traditional goods and services, and this is a trend in which Brazil’s brokerage expansion is a direct continuation of.
Websites like OpenBazaar opened the floodgates by allowing crypto to be used in the popular format of online services like eBay or Amazon, and remain active and healthy to this day. From here, the range of purchase possibilities only increased, now allowing the booking of travel and even the purchase of major real-estate opportunities.
With crypto-credit cards and everyday adoption just a few steps away, the reality of crypto is finally beginning to approach its full potential. Exactly what form this could eventually take, and it’s eventual relationship with fiat currencies, is yet to be seen, but if more countries like Brazil follow suit, the future could be here sooner than anyone thought.