The cryptocurrency market has not been able to recover from the large declines it suffered in May and, so far, the outlook is not only uncertain but it is also discouraging because it could continue to fall. Even bitcoin, the leading digital asset, fell. Specialists on the subject call this crisis a “crypto winter” and predict that it will mean the end of at least 80% of altcoins.
To better understand the situation and know how to invest if you wish, the program Open Drafting summoned Diego Dávila, a journalist from La Voz, Santiago Miranda, CEO and Co-founder of CriptoLab, and Pablo Cardozo Herrera, a computer engineer, who made his contributions via Zoom.
There are currently nineteen thousand cryptocurrencies, of which seven thousand emerged in the last six months. “But the world does not need that amount, so a good part of that entire universe will disappear and others will be consolidated,” Dávila said on the TV screen. Channel 10.
However, for Miranda this crisis is not the end of the digital market:
“Blockchain technology and cryptocurrencies are far from reaching their ceiling. Although in recent times it has lost value, it does not mean that it will disappear, because it is an innovative technology that is here to stay.”
“The market will have ups and downs until it stabilizes,” added the journalist from La Voz.
“It is a long process of adaptability and in the accommodation there will be shocks like the ones this week. Until some State takes up the baton and makes a regulation that works for the rest of the world,” said Cardozo Herrera.
In few countries is the system regulated or controlled by an institution, and Argentina is no exception. Therefore, the three guests agreed that it is essential to seek advice before investing.
“The main problem is getting carried away by the siren’s cry. You have to look for specialists and their advice to operate in this new market,” said Dávila.
For his part, the CEO of CriptoLab suggested: “You have to see the project behind the cryptocurrency that one is going to buy, because each one supports other types of utilities in its programming.”
The computer engineer also recommended “be cautious and always look at the legislation.”
In addition, the lack of regulation enables scams to be carried out, it is even proven that “cryptocurrencies are used for cybercrime”, according to Cardozo Herrera.
Hence, it is essential not to fall into temptations. “This is a time of instability, so you have to be more careful when looking at the proposals you receive. If someone offers you a 20% monthly return in dollars, something smells strange, “said Miranda.
To invest and operate with cryptocurrencies, intermediaries are not required in the transactions. For this reason, the CEO warned:
“Neither the wallet nor the credential you have to give to anyone. The advice is so that you have the security of how you have yours. That is the change that the crypto market introduced, you have the power of your currency, of your capital, you do not leave it in the bank, but it has its difficulties, you lost your password and there is nowhere to go to cry.
While Cardozo Herrera opined: “The Blockchain is here to stay, it is the way in which we will make transactions in the future, but with a regulation and associated with some support, such as the dollar or gold, something tangible that gives the security of who claim and be able to do traceability”.