Cryptocurrencies originated during an economic and financial scenario impacting the entire world since the crisis was causing devastating effects at all levels and structures, where the leading cause was inflation. Check out The complete guide to Bitcoin investment if you’re just getting started with Bitcoin!
The strongest critics are the government entities.
Many entities and representatives of the various financial sectors have demonstrated their negative position regarding the impact these digital financial instruments have had on financial investments within the digital market.
Possibly, too many cryptographic projects have been created to date, but not all are necessarily the same, much less satisfy the exact market needs.
It is interesting how digital transactions have been increasing over time, as well as the availability of using digital currencies through different platforms that have functioned as market leaders and still allow them to operate freely.
However, it should be noted that the uses given to cryptocurrencies, in many cases, need to be more adequate. Still, we cannot generalize because only a small number of transactions have suspicious characteristics related to money laundering.
The market capitalization of cryptocurrencies has increased drastically due to the consolidation that crypto assets have obtained over time, despite the various confrontations generated by the crypto issue.
Criticism has been vital to considering cryptocurrencies as the bubble of the young generation that is unfortunately doomed to burst at any moment, which could leave more than one in ruin.
On the other hand, according to a member of the Board of Directors of the European Central Bank, Fabio Panetta, the digital financial investment system is nothing more than a new way of betting.
This type of radical position exists in a financial market that has been affected by endless opportunities and has not disappeared because of them, which is something to think about.
Anonymity perhaps represents one of the most relevant aspects of this type of digital asset, so transactions are carried out personally, but always keeping the information of the participants (receiver and issuer) in complete anonymity, which in a certain way It provides security regarding the manipulation of data.
Some opinions are harsh regarding the cryptocurrency market, where they have come to be considered harmful from a social point of view, where they propose a possible financial illusion through the use of stablecoins and the risks of leverage in crypto assets.
The social and environmental perspective of cryptocurrencies
The volatility of digital currencies is the element that could have the most effect on the decision of many users to invest or stay out of digital investments.
The cryptographic market has gone through several critical phases where its cycles have gone from stages of extreme profits to a crypto winter that freezes more than one investor.
According to critics of crypto assets, the fact of not having more support than that given by their users makes them feel more uncomfortable as a result of the fact that it is the same users without the intervention of the black hand of governments who are in charge of assigning value to various digital assets.
It implies that free supply and demand fulfill its purpose, except that this is a market whose volatility affects, in many cases, drastically.
This 2022 has been the year with the most significant limitations in the possibility of giving a change in trend concerning the crypto-winter phase, which I entered at the beginning of the year and which accelerated for the months of June-August.
However, the environmental issue has also been one of the targets to underestimate a growing market that has undoubtedly managed to position itself among users to the point of being considered a viable option for investing savings and new capital.
The strong criticisms from the environmental and ecological point of view have allowed the companies that create mining equipment to create environmentally friendly devices, as well, as, in practice, miners and farm owners have taken the most profitable options for environmental protection.
Conclusion
Despite not being at its best moment, the crypto market has shown scalability in terms of the adoption of the financial instruments that it covers and that, for many, are the alternative solution to the economic and financial crises of the traditional system.
