It is a matter of curiosity how cryptocurrencies, which have recently become very popular and rapidly spreading around the world, will win in the future.
The impact of the Covid-19 outbreak, the increase in online shopping habits, and the different financial systems, tax structure and bureaucratic process in many countries have led many companies to cryptocurrencies, facilitating trade transactions.
But experts say that due to changing laws, environmental concerns, and competition from the country’s central banks, they are undermining rapidly developing cryptocurrency markets, which could open different opportunities for many entrepreneurs.
Currently, an intense effort is being made to audit virtual currencies and the companies that make up these assets in Europe and the United States of America (USA). Investors believe that the new regulations will give confidence to the market and attract more entrepreneurs to this field.
Anatoly Crachilov, co-founder and CEO of Nickel Digital Asset Management, is also very pleased with the work done in the crypto money market in the USA and Europe. According to Crachilov, the previous irregular structure brought many problems.
Gary Gensler, the new head of the US Securities and Exchange Commission, pledged to provide “guidance and clarity” to the cryptocurrency market in March. Crachilov points out that this development is a revolution.
Will central banks be able to offer an alternative to cryptocurrencies?
In this context, the “Crypto Assets Market” or MiCA regulation proposed by the European Commission aims to bring a new set of rules to crypto assets and service providers in the European Union.
Vytautas Zabulis, CEO of digital asset trading company H-Finance, describes cryptocurrency trading regulation across the European Union (EU) as “a new banking industry with credentials”.
Besides the EU and the US, some countries such as China, the UK and Russia are considering launching their own central bank digital currencies (CBDC).
Robert Carnell, chief economist at ING Asia, states that the next step in cryptocurrency regulations will be “tax benefits” laws: “If virtual assets owned by central banks are on the rise, it could be the end of other cryptocurrencies.”
Zabulis thinks that if central banks provide “quick and easy” interaction between their digital currencies, most cryptocurrencies on the market will lose their value.
According to Zabulis, it is no coincidence that Bitcoin is seen as a way out in the financial structure of the future. For this reason, central banks will build their virtual assets on Blockchain technology, just like Bitcoin.
Bitcoin, the world’s most popular and most valuable crypto currency, rose to $ 54,000 at the beginning of the week, gaining 10 percent at the beginning of the week with the impact of the reports that JPMorgan is planning to offer a Bitcoin fund after following a fluctuating course.
Zabulis states that if China sees Bitcoin as a threat to its planned digital currency, it could affect the entire industry.
Will cryptocurrencies be able to make life easier?
Although crypto coins have an effect that can make life easier, crypto money mining has an effect that increases carbon emissions and this situation disturbs many people.
Because the annual electricity spent on cryptocurrency mining all over the world is much more than the amount of electricity Argentina consumed in the same time period.
Raoul Pal, founder and CEO of Real Vision TV channel, states that sooner or later a solution will be found and the only way out is an environmentally conscious green revolution.
Therefore, Anatoly Crachilov underlines that in the near future there will be more demand for ESG (environmental, social and governance) compliant cryptos that use more sustainable methods.
“Renewable energies are increasingly falling into this category,” said Crachilov, adding that price competition is driving miners to cheaper energy sources. says.
Zabulis states that Ethereum 2, the new version of the cryptocurrency Ethereum, will be produced in an environmentally friendly way and the energy needs will be kept to a minimum.