In this regard, the director of the Bank of England points to interest rate hikes decreed by state entities in various countries, which would leave less capital capital is most commonly defined as the large sum of money you would use to invest. to invest investing is when you put money in a financial scheme with the intent of making a gain. in the crypto sector. However, the official leaves out that inflation a general increase in prices and fall in the purchasing value of money. in the economies also invites investors to look as alternative to Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and other cryptocurrencies.
The vice-president of the Bank of England Jon Cunliffe, anticipates that the current financial conditions in the country and other nations will cause investors to move away from risky assets such as cryptocurrencies, and instead opt for safer ones.
Investors to opt for safer assets than cryptocurrencies, says Cunliffe
This is what Cunliffe said during a conference held yesterday by the media. Wall Street Journal (WSJ) where the official highlighted aspects such as increases in interest rates in the U.S., which would put pressure against cryptocurrencies as there would be less capital moving into the sector:
“I think as this process continues, as (tightening) begins in the U.S., I think we will see an exit from risk assets (such as cryptocurrencies).”
In addition to the above, Cunliffe also noted that the situation in Ukraine due to Russia’s armed incursion could also motivate people to invest in assets that he considers safer, especially since cryptocurrencies have not reacted in the most favorable way in recent weeks.
A not so accurate reading?
While there are certain noteworthy allegations in the position of the representative of the Bank of England The idea might not be considering certain aspects present in the current landscape that could well be playing in favor of the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. ecosystem in general, far beyond the conflicts and inconveniences that are being experienced today after the fall of Earth and the drop in the share price of the sector’s main exponents.
In this regard, critics and analysts point out that Cunliffe’s position leaves out the economic problems facing the economies of the UK, Europe and the US, which is more evident in the latter because of the increase in inflationary levels that shake the North American country. This fall of the U.S. dollar is what would be motivating many investors to opt for digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies as a way to increase the value of the U.S. dollar. Bitcoin, whose deflationary properties and limited issuance make it a very good store of value in these uncertain times.
Among the proponents of this thesis, Michael Saylor, CEO of MicroStrategy, and famed best-selling author, Robert Kiyosaki, who highlight the present slump in many fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currencies, inviting people to seek refuge in cryptocurrencies, primarily Bitcoin for the above-mentioned characteristics.
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Need for more appropriate regulation
Although the need for cryptocurrencies is already felt among traditional investors, for many analysts there is still a big barrier to access this ecosystem because there are still no proper regulations on the digital currency currency is a medium of exchange that defines value. ecosystem.
While the purists of these technologies view the regulations with suspicion, for traditional investors they are a necessity as they would establish clear guidelines and rules for operating within the sector, even establishing the security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. guarantees that would apply to these assets, especially now that they are a coveted target for many hackers and fraudsters around the world.
For the director of the Central Bank of France Francois Villeroy, what happened with Earth and the fall in the price of the main exponents of the sector is a sign of the need for regulation, which could even be at a global level to establish clear standards for all participants in the industry at an international level.
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Version by Angel Di Matteo / DiarioBitcoin
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