Post by account_disabled on Jan 29, 2024 8:27:59 GMT
Last April, the European Parliament approved regulations to regulate the cryptocurrency market with the aim of providing legal security to a financial market that has had great development in recent years since the launch of Bitcoin in 2009. In the macroeconomics subject of Spanish economics faculties it was taught not many years ago that when valuing a financial market, among other characteristics, its depth and breadth should be studied. Market depth measures the number of sellers and buyers for the same security. That is, supply and demand. They can choose the value above or below the market price. The breadth indicates the volume of assets that are traded there and the number of investors who come to it. The greater the volume of assets, the greater the breadth of that market.
In highly regulated markets in the 60s and 70s, the City of London Stock Exchange stood out fundamentally as the widest and deepest market in the world. The thesis reflected in the Bitcoin white paper is that a monetary Phone Number Database system controlled by central banks and a small number of financial institutions has caused a high centralization of wealth and economic power. As financial mobility becomes difficult, the savings of small owners are hit by inflation caused mainly by monetary expansion and the indiscriminate printing of money by central banks. These ideas have led to the creation of a large number of cryptocurrencies (the figure is around 1,600), although no more than 15 or 20 have had significant implementation and development.
The number of investors in this market and the volume of transactions have been growing significantly in recent years with some ups and downs, mainly due to poor management and security and control failures in some operators and intermediaries in the sector. In 2022 there were record investments, although in 2023 the panorama is different with sharp falls in new contributions. In Spain, according to data provided by the Ministry of Finance, there are 8 million people who invest in cryptocurrencies. Currently, we are awaiting the development of European regulations for some of which there is a margin of 12 to 18 months, so the definitive effects will not be known exactly until early 2025. The high fluctuation in the value of these assets is a fact confirmed in recent years. The main currency, Bitcoin, is currently around $30,000, a figure similar to what it had in December 2020.
In highly regulated markets in the 60s and 70s, the City of London Stock Exchange stood out fundamentally as the widest and deepest market in the world. The thesis reflected in the Bitcoin white paper is that a monetary Phone Number Database system controlled by central banks and a small number of financial institutions has caused a high centralization of wealth and economic power. As financial mobility becomes difficult, the savings of small owners are hit by inflation caused mainly by monetary expansion and the indiscriminate printing of money by central banks. These ideas have led to the creation of a large number of cryptocurrencies (the figure is around 1,600), although no more than 15 or 20 have had significant implementation and development.
The number of investors in this market and the volume of transactions have been growing significantly in recent years with some ups and downs, mainly due to poor management and security and control failures in some operators and intermediaries in the sector. In 2022 there were record investments, although in 2023 the panorama is different with sharp falls in new contributions. In Spain, according to data provided by the Ministry of Finance, there are 8 million people who invest in cryptocurrencies. Currently, we are awaiting the development of European regulations for some of which there is a margin of 12 to 18 months, so the definitive effects will not be known exactly until early 2025. The high fluctuation in the value of these assets is a fact confirmed in recent years. The main currency, Bitcoin, is currently around $30,000, a figure similar to what it had in December 2020.