Cryptocurrencies at a turning point: the situation today, the market, the new rules by Redazione written on 14 March 2022

Cryptocurrency market today: experimentation with digital currencies, quotes and rules, investment opportunities and use of virtual currencies. The cryptocurrency market arouses particular interest among investors, attracted by the great opportunities that virtual currencies seem to offer but doubtful due to poor regulation and continuous market fluctuations, which translates into a strong volatility of their prices. Even more so today, with Russia looking to virtual currencies to circumvent the sanctions imposed in response to the invasion of Ukraine, the US planning the digital dollar to bring order and clarity, savers evaluating this asset to defend against inflation . Let's try to understand what the situation of cryptocurrencies is today, at what point the market is and if it really is a bubble ready to burst. Index 1. The cryptocurrency market 1. How do cryptocurrencies work? 2. What determines the trend of cryptocurrencies? 2. What are the emerging cryptocurrencies? 3. In which cryptocurrency to invest in 2022? 4. Market regulation 5. Payments with cryptocurrencies 6. The turning point 2022 The cryptocurrency market According to CoinMarketCap data updated as of August 28, 2021, there are 11,454 cryptocurrencies today, the total market capitalization is € 1.78 T, the total daily volume is € 86.38 B. Between late 2019 and mid 2021 the use of digital currencies increased by 25 times (+ 2500%) according to the composite index developed by the company ChainAnalysis. A strong push came in January 2021, with growth for the first 6 months of the year 1.5 times higher than the already high pace recorded in 2020. How do cryptocurrencies work? It is one of the most frequently asked questions when it comes to virtual currencies. How do cryptocurrencies work? Those of crypto coins are decentralized markets, the coins are not issued and protected by a central body such as a government or a central bank, but are managed by a network of private computers and servers according to a peer-to-peer logic. The security of users and transactions is ensured by special encryption systems of blockchain technology. What determines the trend of cryptocurrencies? In general, the price of cryptocurrencies follows the logic typical of financial markets and is influenced by various factors, first of all the supply and demand of the market. The market trend is so variable that it is more similar to that of assets such as gold and silver (although that of cryptocurrencies is certainly more volatile). Many believe that cryptocurrencies such as Bitcoin are and will remain speculative assets, to be used as a store of value - from this perspective, it is possible to consider investing in cryptocurrencies to protect themselves from inflation - and not as a means of payment. Another mechanism that influences the value of cryptocurrencies is linked to the halving cycle, i.e. the mechanism by which the number of virtual coins that can be extracted with the so-called mining process is reduced. With reference to Bitcoins, for example, every four years the mining capacity of the coin is halved by miners. On the occasion of halvings, a rise in the value of Bitcoins is typically observed because, in view of the halving, investors begin to accumulate money, causing its price to rise. What are the emerging cryptocurrencies? We have all heard of virtual currencies such as Bitcoin (the most famous virtual currency), Ethereum, Ripple XRP, Litecoin, NEO and IOTA, but there are also emerging projects: Solana (SOL) Cardano (ADA), Polkadot (DOT), Terra (LUNA), ChainLink (LINK), Binance Coin (BNB), Polygon (MATIC), Algorand (ALGO), Avalanche (AVAX) and Curve (CRV). In terms of capitalization, the top 10 positions are occupied by: 1. Bitcoin 2. Ethereum 3. Cardano 4. Binance Coin 5. Tether 6. Ripple 7. Dogecoin 8. USD Coin 9. Polkadot 10. Solana Which cryptocurrency to invest in in 2022? Bitcoin, Ethereum, Polygon, Sushi, Cardano and Chainlink are among the best crypto-assets of the beginning of 2022, or those that have been performing best since the beginning of the year. However, it should always be remembered that cryptocurrency is a high-risk investment, because it is characterized by significant fluctuations that can lead to important gains but also significant losses. => Bitcoin: identikit of those who invest in cryptocurrencies Market regulation One of the problems related to the cryptocurrency market concerns the risks due to the absence of a uniform regulatory framework in the EU. Currently, virtual currencies do not have a legal tender and are therefore not regulated by central government bodies, but are controlled by the issuing body, according to its own regole. So for now in the digital currency market there are no rules and there are no transparency restrictions for the investment products and services related to them, just as there is no specific supervision and control by the supervisory authorities On this front it should be noted that the European Commission has started to take action, starting the process for the approval of a regulatory proposal that regulates the issuance, the offer to the public and the services, also with instruments to combat the abuse of market to protect consumers and savers. In the meantime, in Italy, the register of cryptocurrency operators held by the OAM (Organismo Agenti e Mediatori) will be operational by 18 May, a database that will contain information on service providers relating to the use of virtual currencies and the digital wallet services they operate. in Italy. => Cryptocurrencies: registration in the OAM Register required Payments with cryptocurrencies Is it possible to pay with cryptocurrencies? As we have seen, virtual currencies are not legal tender almost anywhere in the world, this means that Bitcoin or other virtual currencies are accepted as a means of payment on a voluntary basis. The virtual currency that is most often accepted by companies as a form of payment is Bitcoin, being the best known and "consolidated" one. A few examples? Microsoft accepts Bitcoin for payment for services such as Skype or Xbox Live. PayPal introduced the ability to buy, sell and store Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Lush, a well-known cosmetics company, and Starbucks, a US coffee chain with a strong presence abroad, also accept payments in Bitcoin. It should also be noted that in Italy something is starting to move in this direction: in these days the well-known brand "Polpetta" present in the capital has announced that in the three Roman restaurants and in the one in Fiumicino it will be possible to pay directly via digital currency Bitcoin or Ethereum. It is the first restaurant in our country to accept crypto payments. => Pay for the taxi in Bitcoins But this possibility is not yet widespread, so much so that not even large e-commerce sites like Amazon and eBay still allow you to pay in cryptocurrency. However, paying in virtual currency is still possible by using advanced wallets to convert Bitcoin into current currency, such as the Euro, in real time, to be used wherever prepaid MasterCard credit cards are accepted.

The turning point 2022

Digital euro, the ECB starts experimentation July 16, 2021 The executive order signed by the President of the United States, Joe Biden, to initiate the unified regulation of cryptocurrencies seems to represent the turning point towards a new chapter for cryptocurrencies. The White House has asked federal agencies for unified rules on digital assets, to protect investors and consumers, as well as national and global financial stability. In view of the digital dollar, we remind you that the EU has also started its analysis to get to the digital euro. => Fintech: ABI experimentation on the digital Euro ABI itself in Italy is moving in this direction, proving the great potential of cryptocurrencies but also the need for regulation that contains excessive risks, albeit at the expense of yields with such high peaks.

COMMENT. Remember that the block-chain system is a system of false democracy. There are equal conditions between the nodes, but it is like arguing that the Knights Templar were democratic because they shared food and property. Now mining is reserved for a few supercomputer owners. The common citizen who buys cryptocurrencies has infinite possibilities of being scammed, from the Ponzi method to the theft of badly invested money. Combining an anarchist system with a state system is impossible. This is demonstrated by Meta (Facebook) who has given up on launching its cryptocurrency. So we hope that the world will realize the validity of the proposed exhibition of digital currency that respects the canons of the CBDC.