The erosion of Bitcoin and other digital currencies: lost 70% in six months. The Swiss Consub: “Similarities with the collapse of 29”

. resume The gradual weakening of Bitcoin and other digital currencies. Again in conjunction with the stock markets. Perhaps it’s more problematic than the dips themselves. In recent years, Bitcoin has attempted to establish itself as an alternative listing investment, a form of purported diversification. In fact, this assumption proves to be inconsistent. Major Cryptocurrency Falls Again Less than 20 thousand dollars (- 4%), Threshold they have been floating around for some time. Last Friday it fell to $17,600. It is less than a third of nearly 70 thousand dollars It arrived last November. Similar decreases in Ether, Litecoin and Dogecoin. Over the past seven months, the cryptocurrency market has shrunk by 2 trillion dollars.

On June 15, the US platform percentage grid Forced to freeze accounts 1.7 million small savingsrmiatori Who promised double digit returns by investing in cryptocurrencies. According to analysts, “classic banking exercises” have been translated into the cryptocurrency world. Yesterday cryptocurrency broker voyager digital mentioned that May issue notice of default for crypto hedge fund Three Arrows Capital Ltd If you are not able to pay off your loan. Voyager’s exposure for Three Arrows Capital is 15,250 Bitcoin (Approximately $310 million). As noted a few days ago financial times youth and people Low-income people are most exposed to this stagnation, and are the type of savers who The more they invest in cryptocurrency Regarding the resources at their disposal.

Digital currencies are born and raised After 2008, That is, in a completely anomalous monetary scenario, with negative rates and an abundance of liquidity. Conditions that oblige investors looking for some return on investment Even in the most risky assets. As soon as monetary conditions made their way toward a slow return to normal, the mechanism stalled. It does not help the bombardment by central banks and international institutions that do not miss an opportunity to recall the danger of these financial products and, in some cases, their absolute inconsistency.

Over the years, Bitcoin has distinguished itself strong fluctuations, i.e. rapid and severe fluctuations in value. A feature that makes it difficult to use these virtual currencies as an alternative to money. Who would like to get paid something in a few days Could it be equal to half? Of course, the opposite is also true, but casual traders don’t usually seek out guesswork. To overcome this problem, so-called stablecoins have been introduced into the market, which are digital currencies that, through financial products set up as collateral, aim to contain variations and equality guarantee Coins like dollars. But even this experiment failed in recent weeks when many of these digital currencies lost parity in the promised exchange and managers did not receive great explanations about the reasons and the capital formation that should have ensured their proper functioning.

The most skeptical sees cryptocurrency as a giant “Ponzi scheme”. Any financial construction in which royalties are paid through new subscriptions and not by actual increase in value. So when the flow of investments decreases, the whole castle collapses. On the other hand, the more optimistic they are, they consider this stage a hygienic cleaning step that will leave only the most reliable and valuable products alive. What is certain is that Bitcoin and its partners are proving to be subject to exactly the same laws, contrary to what some had hoped. In short, they are going through a kind of existential crisis from which it is difficult to determine how they will get out.

The recent internal meltdowns in the cryptocurrency markets indicate that The dangers have been highlighted for a long time of decentralized digital money realized,” wrote the BIS (a type of central bank for central banks, so) Anticipate some of the contents of the next annual report. General Director Agustin Carstens He referred in particular to the recent meltdowns of “Earth” and “stablecoins” Moon and 70% drop in bitcoinAmong the major alarm bells for the cryptocurrency market. Factors to be understood as indicators of a structural problem in the sector. Without a government-backed authority able to use the tax-secured reserves, Any form of money ultimately lacks credibilityCasrstens said. However, Berri calls on central banks to speed up Create their own digital currencies. “Cryptocurrency trading seems to be getting more and more The US stock market in the late 1920s”, The Swiss market watchdog said yesterday. “A lot of digital product trading looks like The United States Stock Exchange in 1928the year before the collapse, where it was widespread All kinds of abuse“The manager said Urban Angehrn.

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