These are times of high uncertainty due to the complexities of a highly atypical macroeconomic situation. Which means risky assets are having trouble finding their way through the lack of clarity. Inflation or recession? Or perhaps stagflation? This is not a crisis like the inflationary crisis of the 1970s. Nor is it a crisis like the dotcom crash of the 2000s. Nor is it a crisis like the financial crisis of 2007-2008. The lack of precedent creates a rather profound difficulty in forecasting. Because all the models are giving false signals. Why? Because odds are of little use in such exceptional times.
The summer rally was formed on false expectation. Investors assumed that monetary policy would take a turn, sooner rather than later, due to developments around inflation. In other words, the situation was misunderstood by overestimating the small victories obtained. The latest statements by Jerome Powell, director of the United States Federal Reserve, were clear and direct. There is still a lot of work to do. And, according to him, the Reserve will not turn around before reaching the goal. In fact, it is quite possible that the necessary measures will cause some “pain”. However, this “pain”, apparently, will not falter the Reserve. Namely, Rates will stay high, much longer, recession or not.
Bitcoin is having trouble holding above $20K. Pessimism has invaded the market again after the summer rally. Disappointment revived old fears. Ethereum, on the other hand, is getting a lot of attention due to the merge. The event has independently sparked relative optimism for Ethereum. But the rest of the market has not benefited in the same way. September promises to be a month of great volatility and uncertainty.
Now, let’s talk, with a critical eye, about the most important news of the week, according to Cointelegraph en Español.
Amendments to the US commercial code establish the differences between cryptocurrencies and “electronic money”
Over time, regulators will reduce regulatory ambiguity. Which is quite positive for investors and for the ecosystem in general. Because that means we will have more clarity. With clear rules of the game, the investor feels more confident when investing due to the predictability factor. In other words, the regulatory risk decreases.
Of course, regulation is not always welcome in a community with strong leanings toward free-market fundamentalism. The most radical libertarians will surely oppose any regulatory measure coming from a government entity. However, regulation is coming whether we like it or not. In fact, users are the first to ask for that much-needed clarity. I fear that the regulatory issue is not optional.
Binance will suspend deposits and withdrawals of ETH and ERC-20 tokens during The Merge
The Merge will surely be a success thanks to the level of centralization of the entire crypto ecosystem (Bitcoin, included). Which is quite ironic. Coinbase and Binance have already made announcements in this regard. The other exchanges will probably make their announcements very soon with similar measures.
Whales are relatively few. Exchanges are few. The actors are few. Many speak of decentralization. But, deep down, it is a decentralization controlled by a few. For the investor, this is not really a problem. In fact, it is a great peace of mind. Because centralization reduces chaos. However, for the defenders of absolute decentralization, it does represent a problem at the ideological level. Of course there are always ways to close your eyes in the case of inconsistencies. In other words, you can always turn the tables with excuses and semantic tricks. In this space, the centralized can become a paradise of decentralization in a matter of seconds with the right narrative.
Spain: Economists shared their vision on cryptocurrencies and blockchain technology
All economists have their own biases. That’s normal. This especially applies to soft sciences like economics that offer a lot of room for subjectivity. However, when things like this are said: “Any warning regarding risk and working on regulated channels is important”. Like this: “There can’t be many experts if the assets are only a few years old.” And like this: “It is important to train and be informed”. These statements indicate that the level of seriousness and professionalism of the panelists is above average. There is more objectivity here than propaganda. Something quite exceptional in this space. However, something totally necessary.
Ripple CEO Responds To Crypto Leaks Post And Denies Funding Law Firm To Attack Other Projects
When a source speaks of a “secret pact” to attack the competition, any denial by the defendant casts great doubt. This type of accusation (false or true) always arouses suspicion. In fact, when the defendant is extremely upset, that outrage makes him look more guilty in the eyes of the public. A “secret pact” is very difficult to prove. The problem for Ripple is that a “secret act” is also very difficult to disprove. Once doubt is aroused, you always look guilty. And the reputation, whether we like it or not, is damaged.
Now, what is the credibility of Crypto Leaks as a source? On the other hand, we have the possible legal implications. Is there anything illegal about Ripple’s alleged actions? Regardless, Ripple is the party that has the most to lose in this scandal. In the collective imagination, how you respond to an accusation is as important as your innocence or guilt. In other words, Ripple’s reaction will also be judged.
The Argentine province of Mendoza already accepts cryptocurrencies to pay taxes and fees
YoIt is interesting that a province accepts a payment of taxes and fees in another currency that is not the legal currency of its jurisdiction. Such a measure obviously raises questions. Because one might assume that paying taxes in cryptocurrencies has its implications. It could be assumed that a legality already exists. But this is not very clear.
In May of this year, for example, the Central Bank of the Argentine Republic prohibited the country’s financial entities from carrying out or facilitating operations with digital assets for their clients. However, it is now possible to pay taxes in cryptocurrencies in the province of Mendoza. Secondly, why want to pay taxes with cryptocurrencies in a country with exchange controls? Personally, I am going to investigate more about the Argentine case, because I do not understand these apparent contradictions. I confess confused.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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