What if crypto-assets were not in the realm of finance?

金色财经 view 143400 2022-1-15 09:07
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The integration of virtual assets and financial markets has come closer, and as the crypto industry continues in 2020, many organizations have pointed out that cryptocurrencies will no longer be restricted. . In its latest report, the International Monetary Fund (IMF) said that crypto assets are no longer in financial condition. However, they also raised concerns about risks in the cryptocurrency market. The IMF noted that the excessive use of cryptocurrency has increased the relationship between crypto-assets and traditional products such as commodities, which can lead to financial security risks, especially in countries. where cryptocurrency adoption is widespread.

Crypto assets are no longer limited.

The total market value of crypto assets has grown from $620 billion in 2017 to $2.1 trillion today, up more than $3 trillion, and the current market value is still almost four times higher than in 2017. At the same time, it increased. in popularity with retailers and businesses and has been widely discussed in the community.

In terms of asset relationships, before the spread, crypto assets like Bitcoin and Ethereum had little to do with major stock exchanges. It is seen as a risk taker and acts as a hedge against conflicts in other assets. However, everything has changed since the central bank reacted to the crisis in early 2020. The prices of US cryptocurrencies and commodities have risen sharply due to the global financial crisis, easy answers and investors are running a increased risk.

For example, in 2017-2019, Bitcoin's recovery did not move in any particular direction with the benchmark US stock index S&P 500, with a modern correlation coefficient of just 0.01, but depending on whether the asset goes up or down, the indicator moves in a range of 0.36. direction. Go to 2020-2021. Therefore, in 2021 organizations such as Goldman Sachs and TD Securities emphasized that Bitcoin is not a “safe haven asset”.

Moreover, given the popularity of crypto investments, it has gone up or down with the asset. Many organizations have declared that Bitcoin is no longer in place. In December 2020, cryptocurrency analysis company Weiss Crypto Ratings tweeted that cryptocurrencies would not be a secondary currency. They will be financial for people. As time passes, he is exonerated and cannot be stopped. That same month, Finch Capital announced a European Fintech report for 2022, stating that Crypto/DeFi has become vital and companies have acquired Crypto and DeFi, laying the foundation for cryptocurrency across the globe. On January 1, CNET's 2022 Gaming Cryptocurrency announced that cryptocurrencies will continue to enter the mainstream.

Additionally, Forbes announced its predictions for the crypto and blockchain markets in 2022, saying that fixed income securities will become a priority. As reported by the Presidential Task Force, between October 2020 and October 2021, spending on fixed parts increased by 500% and this adoption shows no decline. Bitcoin hitting $100,000 and rising in price, continuously dampening global gains, and growth in crypto assets all signal the conclusion that crypto assets are here.

increased risk

Another link in a new IMF report shows that Bitcoin is a dangerous asset. The relationship with the commodity is higher than the average of commodities and other commodities such as gold, the level of investment, commitment and large gains, indicating the return on risk, the difference is limited by compared to the initial expectation.

The growth and significant synchrony and ripple of cryptocurrency and stock markets indicate the emergence of a combination of two asset classes, leading to the spread of shocks that could harm financial markets. The manufacturer is not stable. IMF analysis shows that crypto-assets are not part of the financial system. Given the inconsistencies and high costs, consolidation can quickly pose a risk to financial security, especially in countries where cryptocurrency is widely adopted. . Therefore, it is time to adopt an international regulatory framework to guide national policy and reduce financial stability risks to the crypto ecosystem.

According to the IMF, this framework should include policies governing the use of crypto assets and clear rules for financial institutions to regulate their accuracy and involvement with these assets. Moreover, to monitor and understand the rapid development of the cryptocurrency ecosystem and the risks it poses, one needs to keep different data created by asset anonymity and restricted to international standards.

Furthermore, a recent report published by the Ouke Cloud Chain Master also pointed out that Bitcoin has more valuable assets than assets. Given the size of Bitcoin's market capitalization, it is difficult to walk away from a truly independent market, and it will be affected by the market outlook and the overall business environment.

Overall, the crypto industry is going to be big, but the industry is not perfect. Investment bank and asset manager JMP Securities said adoption and adoption are not always well understood because the industry is still in its developmental stages, policies have yet to be developed and companies need more training to provide skills in the field. Many now see the negative aspects of a mature environment and will continue to improve over time.

The future of encryption

In general, cryptocurrency investments have been driven by the market. Bitcoin has become a huge investment as traders often consider crypto assets to be part of a wide range of markets. Moreover, the adoption of cryptocurrencies has grown significantly over the past 12 years and BTC is now acquired by large companies operating in the retail sector. These companies, including Starbucks, AT&T, and PayPal, accept Bitcoin and other cryptocurrencies for their customers. However, the whole business still needs to be managed and matured. For the further development of cryptographic tools, different parties provided different answers.

Fidelity, one of the largest financial advisors, launched Fidelity Digital Assets in 2018, providing businesses with crypto products and services, including Bitcoin. Recently, Tom Jessop, president of Fidelity Digital Assets, a crypto asset division of Fidelity Investments, noted that cryptocurrencies are unique assets and that companies and others have worked well with administrators to put this legacy in the foreground. . .

Chris Kuiper, director of research at Fidelity Digital Assets, and Jack Neureuter, analyst, said in a statement that the new rules will be in place by 2022 as crypto-based businesses continue to innovate and grow in the industry. Management and access to integrated products, and they hope that 2022 will be clearer than usual, they said. Because it's the key to bringing hundreds of millions of millions of natural resources into the digital heritage ecosystem. Fidelity analysts said the combination of the right policies and financial firms committed to giving investors access to digital assets can be fully supported.

Cardano founder Charles Hoskinson predicted on YouTube that by 2022 and beyond, the cryptocurrency industry will experience a variety of risks and governance risks.

According to Sam Bankman-Fried, CEO of FTX, cryptocurrency policies will be a global priority by 2022. He said government work will boost the cryptocurrency market and make it easier for wholesale investors to access characters. He also said 2022 would be a major breach in fiscal stability with greater involvement from the SEC and CFTC.

Gita Gopinath, chief financial officer of the International Monetary Fund (IMF), said that cryptocurrencies are more attractive in emerging markets than in developed countries which regulate the exchange rate, manage capital and cryptocurrencies have these problems . Management is therefore essential in this industry. Given the decentralized status of cryptocurrencies, banning cryptocurrencies presents a valid problem that requires international cryptocurrency law.


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