“I have no doubt that the financial market will be revolutionized by the blockchain, bitcoin and other cryptocurrencies”, said economist Fernando Ulrich, an expert on the subject and author of the book “Bitcoin – the currency in the digital age”.
He opened Semana Cripto (Crypto Week), an event organized by the trading platform Nelogica, between March 8 and 11, which featured important names in this market – including the participation of the Director of Products and Partnerships of Transfero Swiss, Safiri Felix. Besides Fernando and Safiri, financial analyst and founder of PhiCube, Bo Williams, and the creators of the Use Cripto channel, Carol and Kaká, also participated in the discussions.
In the view of the experts, the cryptocurrency market is very promising, with the increasing digitization of business and transactions around the world. “The outlook that it is a digital gold, because of its scarcity feature, is what makes cryptocurrencies, especially the bitcoin, appreciate so much”, Carol said.
In his presentation, Fernando recalled the beginning of the bitcoin when Satoshi Nakamoto published a paper in October 2008 describing its creation. At the time, although the idea of digital money was not new, not even crypto experts believed that the project had a chance of success. Today, he already considers the use of cryptoassets “irreversible”.
“This market moves tens of billions of dollars daily. It is an asset that is on the internet and there is no middleman”, he explains. “This has attracted not only individuals, but also large companies and even public organizations. It is a point of no return”, adds Fernando.
“We are seeing institutional use, which signals change and greater acceptance”, Carol says. “The interesting thing is the characteristic of a digital gold. Conventional gold presents some difficulties of use, such as portability and identification. In the case of bitcoin, authenticity is easily verified”, she says.
However, according to the experts at Use Crypto, one of the big problems of the bitcoin market is the intense use of energy. “The network is the most checked in the world, it needs encryption and recoding, which consumes a large amount of electricity. That’s where the cost of transactions lies”, Carol points out.
It is worth noting that there are studies showing that the money printing and the computational power of banks to maintain electronic transactions also consume a large amount of energy.
Protection against the devaluation of traditional currencies
“Especially at this time of economic crisis, with governments injecting money into the market and central banks issuing currency, the risk of devaluation is enormous”, Bo Williams noted. “There’s only one asset in the world that solves this: the bitcoin. This is providing a very big cultural and economic transition”.
The analyst’s opinion is in line with Safiri’s analysis, who believes that cryptocurrencies are key to protecting capital from deflation. According to him, the domestic market is maturing with regulation. “The idea is to diversify investments: buying bitcoin instead of leaving your currency melting in your pocket”, he highlighted during his presentation. Check out more details of his assessments about the market!