Rumors of a slowdown, or even an economic downturn, are becoming increasingly real. In certain parts of the world, it is perceived that this is already happening, and in Europe, it is perceived as less immediate but deeper. However, in Latin America, despite the strong inflation experienced by countries, the IMF forecasts economic growth for Latin America. This could prove beneficial for those who purchase and hold cryptocurrencies, and cryptocurrency expert Angelo Babb discusses why.
So far this year, anxiety has been unleashed among investors. While in those who have not yet started their way in the world of investments, curiosity. It should not be forgotten that cryptocurrencies began operating twelve years ago. Therefore, like any new market, it is still in the process of adjustment.
Countries such as the UK and the US are planning to take some measures for this market more strictly. Even since last year. However, after what happened this year, the forces to regulate it have been accelerated.
For example, in June, a detailed bill was presented to the US Congress that seeks to establish supervision and sanctions for brokers that operate with cryptocurrencies, as well as seeks the creation of regulations regarding even the energy used in the mining of cryptocurrencies. The so-called stablecoins are part of that adjustment, as they aim to link directly to a “stable” asset or a basket of assets.
Explains Babb, “Like any novelty, within the financial market, investments in cryptocurrencies expanded a lot around the world. Perhaps, it is one of the markets that turns out to be more accessible while there are shops that accept these virtual currencies as a means of payment in commerce and services.”
During its young age, about six hundred cryptocurrencies have been created in this market. Of these, there are some such as Bitmart, Coincheck, and many others that, during the last months, have been declared as ‘without solvency.’ However, there are others such as Binance, Coinbase and Kraken that have grown their position and compete against the first digital currency, Bitcoin.
Within this scenario, the cryptocurrency Ripple is a clear sign of how part of the cryptocurrencies are adjusting to the nascent regulations of governments based on their operating principle, the blockchain. Today, Ripple exchanges virtual currencies and allows their international transfer. So even today, it is foreseen as an alternative that could replace the SWIFT system.
Cryptocurrency transactions require the exchange to be verified to be added to the blockchain record. Proof of the confidence in this system, Banco Santander is one of the first banks that has joined the RippleNet network to carry out operations quickly and transparently.
“It is irrefutable that the cryptocurrency market is in incipient development,” adds Babb. “Despite the contemptuous statements on the part of some tycoons, the truth is that this market has a lot of credibility among millennial and centennial generations because they perceive it as more democratic and transparent compared to others.:
In the absence of a central point of control, the chances of it being corrupted in a single power or nucleus are lower, and it will continue to be so as long as there are still various currencies, brokers and lenders to brokers that mobilize it.
Regarding what has happened in the cryptocurrency market, large and small investors have withdrawn their investments. Others wonder about when to save and when to invest. In addition, a few, with capital to cover possible losses, have decided to keep them or even buy more, taking advantage of their low prices.