The Canadian scholar who said the fintech sector would fail thinks that it would hurt the economy. People who put their hard-earned money into the cryptocurrency unit that was at the center of the recent sharp drop in digital currencies may come to regret not reading a recent study by a Canadian financial technology professor named Ryan Clements that explains why it was bound to fail, visit: https://bitphone.net/
In fact, investors who bought a lot of crypto assets since the end of 2020 but haven’t sold them yet might be kicking themselves for not listening to what Clements said in my most recent article about crypto assets. Most people will lose a lot of money, which means that their assets will be worth much less than what they bought them for.
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Trillion-dollar losses
Now, other financial experts agree with his warning that this time, the loss of more than a trillion dollars’ worth of assets on the world’s cryptocurrency exchanges would hurt a lot more people than just the “crypto bros” who put their own money in the market. This time, the value loss will be caused by a worldwide market crash.
Clements, a securities lawyer who teaches at the University of Calgary and gives advice to Canadian securities regulators, said that this doesn’t mean that the most popular crypto assets won’t go up in value in the future.
Clements said that the current sell-off of cryptocurrencies has solved some problems and eased some worries. Canadians who still have investments are waiting to see what will happen to the value of their assets on Friday the 13th.
First, you should think about whether the limited supply of the most popular cryptocurrencies, like gold, makes them a good way to protect against inflation or the loss of other risky assets.
Most people who followed actor Matt Damon’s advice to invest in cryptocurrencies after he said “fortune favors the brave” would have lost money.
Unstable stablecoins
Even though they are called “stablecoins,” they have made the market less stable overall. Maybe it’s funny that these “stablecoins” make the cryptocurrency market go down and become less stable.
The Financial Times in London warned its readers on Thursday that the unusual fall of the cryptocurrency market could also affect traditional markets.Trade Cryptos stable coins and other coins on the most trusted platform Bitcoin smart
El Salvador has made bitcoin a legal form of money, but the country is said to have lost $40 million US dollars on Thursday. This much money is enough for the cash-strapped Central American country to pay its next bond payment, but credit rating agencies say that if the country accepts bitcoin, it will be more likely to stop paying its bills.
Even though Coinbase had only been open for three days by Thursday, its shares had lost half of their value on the traditional market. Coinbase is a company that runs a place where digital tokens can be bought and sold. (fernandez-vega.com) Canadians don’t feel as rich as they used to when they add up how much they’ve lost in bitcoin or sell to stop losing more.
The blockchain is run by the company Terraform. The terra cryptocurrency unit’s blockchain was “officially put on hold” for two hours on Thursday. Blockchain is the software that shows who owns each unit of a cryptocurrency and how much it’s worth right now on the market. Before everything stopped, the unit was worth 23 cents at its least.
Clements warned about Terra in a paper called “Built to Fail,” which many people read. The subject of this paper is “algorithmic stablecoins.” Terra is the best example of this type of currency, and the person who made it knew it would fail. The warnings that Clements gave were mostly about the planet Terra.
If the price drops too quickly, people who bought their homes with loans may be forced to sell. Clements is sure that some of the 19,419 cryptocurrencies that are listed on CoinMarketCap will go to zero or do even worse. He is also worried that it will be easy to spot fake cryptocurrencies.
