April 29, 2020 by Clementine
The attraction of investors to the crypto-currency is becoming more apparent, particularly for the bitcoin which is reputed for its reliability as a store of value. And yet, a group of researchers from the University of Oxford is swimming against the current to think that these types of assets involve a high risk.
The crypto-currencies increasingly strained
For the time being, the activities of the sector of the crypto-currencies are thriving, however, the upheavals at the level of the finance traditional that occurred in the month of march could trigger such events to the sphere of crypto.
To remedy the situation, the U.s. should support the costs of the crypto-currencies in order to prepare an alternative for the finance, which is greatly shaken by the sanitary crisis. According to the above article from the University of Oxford, each new case COVID-19 would lead to an influx of funds in the market of crypto-currencies.
However, the university of Oxford to recommend vigilance on the part of the users of these assets. The outbreak of the market could, according to them, follow an inverted U-shaped curve, that is to say that it can register the price increases at the beginning, and then decrease as the situation is getting worse.
The worsening of the pandemic would certainly be investors to urge them to withdraw completely from all markets, including the market for crypto. The other possible scenario, investors could return in the traditional sector in the case where the government policies are effective.
Need for regulation
Convinced of the potential of crypto-currencies to remedy the disruption of the free flow of capital, Oxford researchers hope that the sector crypto is regulated in the shortest possible time. In effect, the impacts would be even more disastrous in the worst case where the movement of digital assets met with a failure.
However, the academicians underline that the regulation will not be beneficial if it is just a formality to fill out. The market crypto needs regulation to deploy fully, that is to say compatible with the innovation.
What do you think of this analysis of the part of the Univesrité of Oxford on the evolution of crypto-currencies ? Share your thoughts in the comment section below.
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Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting. The latest articles by Clementine (see all)