Privacy coins could be crushed as governments begin to regulate cryptocurrency. The privacy coin sector needs the inflow from institutional investors in order to grow. Problem is, these institutional investors won’t won’t invest in privacy coins because of their high scrutiny.

 

A popular crypto analyst says that regulation will deter institutional investors from entering one sector of the altcoin space.

In a new interview, the host of financial education YouTube channel InvestAnswers unveils why he is skeptical about investing in privacy coins, which are cryptocurrencies that obscure transaction information, allowing users to maintain anonymity and hide their activities.

“For privacy coins to succeed, they need to raise institutional money. I know the people out there in the audience believe that things like VCs (venture capitalists) are bad, but if VCs are bad, there would never be anything like Microsoft or Hewlett-Packard or Google or Facebook or Tesla or SpaceX.

These are the people behind all these successful companies, and the problem with secret coins is they will always be viewed under a very high regulatory scrutiny, and therefore, institutional investors will not invest…

I do believe there’s a need, but as regulation comes, these are the first things that are going to get quashed.

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