Bear Market End in Sight? Blockchain is still a powerful tool

Bitcoin and cryptocurrencies continue to divide people faster than political climates. It seems that for any doubtful and unbeliever, there is someone who supports the crypt as the financial savior the world needs.

Yesterday we discussed the many losses that cryptic investors have induced in recent months. Bitcoin, for example, reached a figure close to $ 20,000 last December, but has since continued to roll downhill. Other forms of cryptography, such as Litecoin and Ethereum, have followed the example, losing hundreds or even thousands from their December peak prices

 Bear Market

Those who have chosen to invest in cryptocurrency in the new In the end the year has experienced financial crises from which they still have to recover. Tony Yoo, for example, is a 26-year-old financial analyst who lives in Los Angeles. In early 2018, he invested more than $ 100,000 of his personal savings in various token and cryptocurrency initiatives, but his investments went from over 70 percent, and $ 100,000 dropped to around $ 30,000. A huge blow if there ever was one …

 Tony Yoo

Tony Yoo, invested more than $ 100k of his savings last fall, his assets dropped by nearly 70 percent in value. Image of NYTimes

But unlike others who fell victim to the "crypt trap", Yoo is not terribly worried. While his views on the currencies vary, he is extremely confident of the blockchain – the technology behind the coins – and is convinced that the benefits of blockchain will bring our financial infrastructure to ever higher levels.

"There's a lot more behind this new wave of technology and innovation that I'm sure will take control of our society in due course," he comments.

Blockchain is a powerful tool

What fascinates him personally is the way in which blockchain can cut the half man – making the majority of traditional banks and institutions void and invalid – and bringing the global population closer to complete control over your personal banking system. No more expensive taxes, no more corruption – just you and your money.

Furthermore, both bitcoin and cryptocurrency communities are laden with people known as "hodlers", ie individuals who refuse to sell their coins regardless of the circumstances. The cryptography market could be in a garbage can, yet the thought of selling a single currency would be close to sacrilege.

Governments need to see the truth

Many hodlers believe that a rally is always possible, and they do not want to be left in the dust if Cripto decides to go north. The reasons for this rally tend to vary, although a common thing is that governments of developed nations and the third world will soon recognize the capabilities and benefits of blockchain and implement it in their current systems. If this happens, the platforms behind crypto are universally designed to become mainstream.

Dominik Rehse – blockchain specialist with the German Center for European Economic Research (ZEW) – explains:

"Governments must be careful not to lose on this vital innovation, which is really driving large areas of economic activity . "

Are stable coins the answer?

However, he further commented that the addition of more stable currencies to the cryptocurrency space could largely help to legitimize it. He says that in order for cryptocurrencies to become mainstream, people need to trust more. This means freeing cryptography from its volatility and the only way to do this is to introduce more stable tokens:

"Just as high-inflation countries often fight due to unstable currencies, the same is true for cryptocurrencies: to become a commonly accepted payment method, they must be stable. "

  What are Stablecoins?

Read: What Are Stablecoins? The Polarizing Solution to Cryptocurrency Volatility

Some Think Others

But not everyone is on agreement. Obi Nwosu – founder and CEO of the collective Crypto exchange Coinfloor – states that stable currencies, at present, require a central organization for support and governance, which ultimately runs counter to the primary principles of cryptocurrencies. He says that the idea of ​​a crypto was to put financial power back into the hands of those who use it, and that having a central body in the middle prevents this from happening.

Comment:

"We think that even if stable currencies could be popular in the short term, a decentralized currency that is stable and does not have a central organization behind it will be safer in the long run." [19659025] Source link