What effect does the use of cryptocurrencies produce in the States?

The rise and excessive growth of cryptocurrencies have crudely penetrated the world of finance. A large group of people with or without knowledge about bitcoin including investment, business, trade, and exchange of digital currencies, are attracted by this economic and financial trend that provides excellent benefits.


To be part of this new world, you must have a particular type of knowledge.

Unfortunately, this group of people has not even bothered to think about the disadvantages and obstacles that the use of cryptocurrency encompasses related to cryptocurrency trading, particularly and specifically with its volatility.

Therefore, a study of all possible risks is recommended before starting operations.

In this current world, from the minor living or inert beings to global economic and financial exchanges, they are all in balance, where everything is centered on a very internally stable way of interrelation, even if it is very little and insignificant. Therefore, the safer a medium is, the less profitable it will be.

If the gains and benefits of cryptocurrencies are usually too significant, the risks will be imminent from the other party; it is only a breakeven point. Not that the cryptocurrency market is still developing.

Its operation changes daily, new currencies arise and we must not leave aside the legal clauses. Therefore, you must become aware and decide as an investor and for yourself if the world of cryptocurrencies is part of you.

Imminent risks for the population due to the use of cryptocurrencies

Crypto assets have risks increasing markedly as the market capitalization grows, the investments made by retail users, the interpretations of the financial sector common to these assets, and their application in payments and cancellations.

The market measure is the product of ten, similar to high-yield coupons in the United States.

For the IMF, the cryptographic system is prone to fraud that affects investors since analyses on these markets currently reveal that users have suffered losses amounting to more than 10 billion dollars during the past year due to fraud Or scams in such needs and risks therein.

They are exposed to limited or inadequate transparency and surveillance; in addition to the fact that these assets are speculative and with too much volatility, some drawbacks exposed by these crypto-assets and their users have recently been revealed.

Bases of reference the specific losses with crypto assets

A current account of these losses is the recent use case of favorite information in OpenSea, the most influential operator of the digital market for singular and non-fungible tokens, since this practice, in the controlled world of securities, could give way to a possible criminal offense.

Another point of reference is the case of DeversiFi, an EXCHANGE trading platform for digital currencies, which recently made an improper payment of 24 million dollars.

The incident was resolved in the best possible way, thanks to the excellent attitude of those involved, but as soon as the activity grows and these problems increase, the system’s credibility may be broken.

To prevent the risks posed by digital currencies, the most important institutions at the international level, such as the Financial Stability Board and the IMF, are suggesting alternatives adapted to their reference points, such as that the national power is in the duty to regulate and control, with the most significant equity, digital currencies.

An effective risk process must be present, including measures on cyber security, regulations for money laundering, and adequate requirements for managers.

Users must have information systems that guarantee the safeguarding of information; Established transparency guidelines must be met that provide users and other parties with interest in understanding the behavior of the digital currency.

 All related and provided information must be adequately inspected since it is considered that control similar to that applied to operators that offer similar products such as digital payments, money market assets, and bank deposits, among others, should be given way.

Conclusion

Cryptocurrencies must be known before investing since their environment is surrounded by very marked risks which can lead us to total losses of the crypto assets that are owned, which is why the states and the government emphasize the importance of regulation of the same to avoid fraud and scams to investors, in addition, to prevent the relationship of cryptographic markets with illicit activities.

What effect does the use of cryptocurrencies produce in the States?
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Bibliography ►

phoneia.com (May 12, 2022). What effect does the use of cryptocurrencies produce in the States?. Bogotá: E-Cultura Group. Recovered from https://phoneia.com/en/what-effect-does-the-use-of-cryptocurrencies-produce-in-the-states/