Cryptocurrency investments grow in Brazil despite crisis

Cryptocurrency investments grow in Brazil despite crisis

According to MoneyWeek participants, cryptocurrencies went through a test of fire during the pandemic and proved resilient

Cryptocurrency investments grow in Brazil despite crisis

By Editorial Staff

Investments in cryptocurrencies have been outstanding even in the scenario of economic slowdown resulting from the Covid-19 pandemic. The currency has been valuing in recent months, presenting itself as a promising possibility, especially for those seeking to diversify their portfolio.

According to Ricardo Da Ros, Ripio’s National Manager, there was an intense demand for bitcoins in March and April, the most critical months of the crisis in Brazil. “The volume traded was three to four times higher than that of January and February”,  he said on Tuesday, during one live on the second day of MoneyWeek. “People wanted to protect themselves by leaving traditional assets”, he explained.

For Da Ros, cryptocurrencies went through a test of fire during the pandemic. “Bitcoin came after the 2008 crisis, but it had not yet gone through a crisis”, he recalled. “The currency passed the test and is now a good investment option in the medium and long term”,  he said.

Investments in cryptocurrencies are safe and transparent option

Safiri Felix, executive director of the Brazilian Cryptoeconomy Association (ABCripto), , the cryptocurrencies are a safe option, although they are still little known – all transactions are traceable and have a level of transparency many times higher than that of the traditional financial system – and will increasingly rely on regulation.

 “The market is not regulated yet, but it is rules-based”, he noted. “The IRS has full control over the movements”, he said, noting that there are bills being processed to regulate bitcoin and consider the use of cryptocurrencies as a store of value, means of payment and digital commodity.

 Crisis accelerates perception of the importance of financial education

The crisis caused by the Covid-19 pandemic and the perception of the importance of emergency reserves accelerated the perception of the importance of financial education. “It is possible that there is now a search boom for information”, said independent finance professor Edgar Abreu.

For Abreu, the investor public needs to have a minimum knowledge to be able to judge whether promises of gains are credible information.

Lucas Silva, a professor specializing in financial certifications, recalled that other crises should follow as a result of the Covid-19 pandemic.

 “The demand for certification today is increasing and comes not only from market professionals, but from other areas as well”,  he said.