After another bitcoin crash, is there a future for cryptocurrencies?

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Analysts highlight that, in times of high volatility in the markets, there are investors who tend to stay away from any type of risk

The most popular of the cryptocurrencies, bitcoin, suffered a loss of $ 500 on its price last Friday, and closed at $ 6,797.

Financial traders acknowledged that volatility in world markets also impacts cryptocurrencies, but noted that demand for these assets increased anyway, due to the advantage of being able to transfer them digitally, in the context of the coronavirus quarantine.

Consulted by Télam, these operators also assured that cryptocurrencies They will suffer less from the economic crisis than sovereign currencies, and they specified that there are also stable assets in this segment that allow the interest of more conservative investors to be channeled.

The manager of the Terrífico Capital fund, Gonzalo Arzuaga, indicated that “the coronavirus affected cryptocurrencies like most financial assets, negatively, with an impact in the very short term. “

However, he pointed out that “as banking operations are complicated, quarantine by also preventing people from approaching an agency that transfers money, cryptocurrencies work 24 hours a day, seven days a week.”

Thus, he stressed that “one can send and receive cryptocurrencies in minutes,” and stated that “that began to have more interest from people.”

In another order, he estimated that “in the long term the trend is positive for cryptocurrencies”, because he pointed out that “the need for governments to resort to monetary issuance to mitigate the effects of the pandemic on the economy, will generate inflation So cryptocurrency as a non-inflationary alternative is becoming very attractive. “

For her part, the director of Bitso’s Southern Cone, Nora Palladino, told Télam that “cryptocurrency markets are facing volatility that replicates the collapses of the world’s main exchanges.”

He stressed that “in times of high volatility in the markets, there are investors who tend to stay away from any type of risk, and this can also affect the cryptocurrency market.”

“Now is a time when you can also think about stablecoins. These types of coins have their value associated with another asset, such as gold or a fiat currency such as the US dollar or the euro.“Palladino pointed out.

He considered that “this can be profitable for investors seeking to safeguard their assets, seeking to reduce risk,” and stressed that “it is just important for them to know that there are conservative alternatives in the crypto world.”

Meanwhile, the founder and CEO of Buenbit, Federico Ogue, explained that “The price of bitcoin moves to the beat of international markets,” adding that “that’s why it’s so volatile these days.”

Anyway, he remarked that “there are two effects that neutralize each other”, and stressed that “the decline in economic activity as a result of the quarantine makes people more conservative with their savings, which discourages the purchase of cryptocurrencies” .

On the other hand, he pointed out that “quarantine also means that various financial services, such as the exchange market, both white and black, are quite unemployed”, for which he indicated that “many people who would normally go to operate at the dollar blue, makes digital money transfer operations taking advantage of cryptocurrency technology. “

For his part, the president of the NGO Bitcoin Argentina and co-founder of Alianza Blockchain Iberoamérica, Rodolfo Andragnes, explained that “the price of bitcoin collapsed along with the debacles in the markets, sowing doubts about its role as a store of value or as a backup asset in the face of global economic crises. “

However, he stressed that “one of the most important attributes of bitcoin is that its issuance is predefined”, and stressed that “regardless of what happens in the world, this asset will continue to issue exact units.”

Instead, he maintained that “the state currency is clearly the worst example, as it has been shown that it is issued as the needs of the current government of each country change.”

“The current monetary models will not be sustained over time versus the existence of these more reliable and efficient models. So investors will continue to believe in Bitcoin as a better store of future value even if the current price does not say so,” Andragnes concluded.

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