The crypto asset market is going through a period of strong devaluations, with Bitcoin and Ethereum leading falls of 70% and 80% respectively in the last 8 months. Despite the instability surrounding digital currencies, CoinsPaid, the Estonian company responsible for processing 8% of the world’s global Bitcoin transactions, believes that the crypto winter should not affect the growth in the use of cryptocurrencies by of people and companies.
“We can make a parallel of what is happening right now with the internet bubble that we live in the early 2000s, when there was a great economic speculation in relation to technology companies, which resulted in a hesitation in the value of this type of stock. However, after the “bubble” burst, it was not the end of the Internet. On the contrary, we had a digital revolution and cryptocurrencies may indicate a similar step.”, says Estefano Debernardi, CoinsPaid Business Development Manager for Latin America.
In recent years Latin America has taken the lead on the issue of regulation, it was El Salvador who recognized and adopted Bitcoin as its official currency. However, bills are being advanced in countries such as Brazil, Chile, Argentina and Mexico. In the rest of the world, Singapore, Portugal and Malta are already far ahead in both adoption and regulatory matters, with an ever-accelerating move towards using digital currencies in the everyday lives of multiple people at once.
Also according to a survey conducted by the company in March this year, 50.5% of Brazilian respondents claimed to have a positive impact on the image of companies that accept cryptocurrencies as a form of payment and 36.3% of the population is even more likely to adopt cryptocurrencies as a form of payment for their daily purchases.
“The drop in the value of cryptocurrencies has come as a huge shock to those looking to make money from digital assets.. For a long time we only heard about the appreciation of assets and little about the possibilities of using currencies. This movement seems to be changing and more and more people are starting to use cryptocurrencies as a form of payment.. In the second quarter of this year, for example, we registered a record in the number of transactions and reached a volume of more than 2.8 billion euros processed by our platform, with around 1 billion euros in May alone.Debernardi said.
The high volatility and declines that cryptocurrencies are experiencing can be explained in part by the general risk-off sentiment in global markets, fueled by interest rate hikes by central banks around the world and signs of an economic recession to come.
The main obstacle remains regulation, where today the market operates in a gray area in much of the world. With this uncertainty, companies appear that offer unreal opportunities and profits that end up tarnishing the reputation of this innovative market.
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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