THE RISKS OF THE CRYPTO MARKET IN TERMS OF REGULATORY PROCESSES

Greetings and welcome dear users of this prestigious platform, especially to all those who make daily life in the community of #leofinance, the topic that concerns us this time, responds to a question that a colleague has made me about the behavior of cryptoassets.

Is it possible that applying a regulatory system to the cryptocurrency market could make it more reliable?

As we realize, it is a dichotomous question, which we can answer with a simple YES or NO, now, to go into a little more detail in the approach, which has bases that allow us to support a valid answer, we will rely on the vision of one of the largest investors in the crypto market, referring to Changpeng Zhao CEO of Binance.

Undoubtedly, the vision of this character is broad as far as cryptocurrency is concerned, hence it is no secret that this individual has generated substantial profits through this new process or economic system, based on the blockchain and a decentralized economy.

So, in the opinion of Binance's CEO, in a certain way a regulatory process will generate some confidence that will gradually boost the use of cryptocurrencies in general, although it is also possible that these regulatory processes will not be the panacea for different drawbacks associated with the crypto market.

Among which we can highlight, hacking, account usurpation, data loss, among others, which are also problems that are evident in the banks of the old economy, now, what we must be sure of, is that the crypto market has come to fulfill specific purposes and to facilitate the process of transactions between users, efficiently, safely and improving the negative effects of the traditional economy.

Therefore, despite the scandals presented during the course of the year with the incidents associated with Terra-Luna, which has been one of the scenarios that have most influenced as measures to regulate the crypto market, these are scenarios that do not represent the broad functioning of cryptocurrencies in general, so they are processes that are assumed to be isolated and that should not impact the financial ecosystem proposed by cryptocurrencies.

Therefore, the current problem of users is misinformation, as they have not taken the time to become literate in terms of the basic requirements of how cryptoassets work and consequently put their investment portfolios and the economic resources available in them at risk.

We are facing a new economic order, that beyond regulations, cryptocurrencies are projected to a much broader process of massification that will facilitate the exchange between nations and improve the quality of life of each of the users that share this financial mechanism.

So we must be aware that at some point in our history, large nations will apply regulatory measures, but these will not be able to stop the exponential growth and massification of a growing market that allows greater efficiency at an economic level.