Cryptocurrencies in correction? What can we expect in the future

Cryptocurrencies Future

Cryptocurrencies expand through protocols that were born from day one as global instruments without jurisdictional restrictions.

Who can apply inductions from other markets or other financial resources to this one that has so many differences and novelties? The economic sector of cryptocurrencies has been growing systematically with capital flows that grow year after year. Although it is not the only growth that it has been having. They are not the same ones who invest more money! It is that there are new interested parties. And not all the contribution is just money. There are also those who enter this ecosystem providing computer resources, which make more and better transactions or processing grow, for which they have economic rewards! As well as creatives developing new flavors with cryptocurrencies that contribute to issues of education, health, food, equality. This is how we could mention the 17 sustainability goals (SDGs) of the United Nations.

Given the uncertainty of the world in general, why could cryptocurrencies be alien? However, as Diego Torres, with whom I agree: “… one of the main advantages of this ecosystem is that it is extremely egalitarian, any programmer or entrepreneur can participate globally without having to request permission or obtain a license or access privileged”.

It is one of the financial systems with a high level of accessibility or greater diverse inclusion, if not the only one in this sense, fully considered. This has been demonstrated since the beginning of this ecosystem, which was born from the intrepid or daring to new technologies, mainly natural people without large capital. For later, and especially in recent times with cases such as companies of all kinds with their CFOs investing their profitability to generate their own financial assets or as an institutional investment.

Are there risks? Yes, of course there are. But ask Diego, who tells us that there are geopolitical, technological, regulatory, financial and finally environmental ones. The currencies within this scope are involved in all those dimensions mentioned by Diego Torres and more and more. Thanks for the perspective, Diego. From my point of view, beyond the global pandemic situation, of all these risks, the one with the greatest uncertainty is regulatory, since it depends on different moods, strategies and contexts in each area or country of our wonderful planet.

Open innovation, or open innovation, that cryptocurrencies bring to the financial world is from my perspective like the one that the internet brought. And it is fascinating to see large banking structures twist the direction of their efforts and resources to become more and more involved in this new world. This open innovation is generating synchronisms, synergies that push the emergence of new projects by Intrapreneurs and entrepreneurs of all kinds. For Diego, they are essentially a global coordination mechanism, and I like to say that they are the fuel for open innovation to change and improve a banking and financial system worldwide.

And on top of all the above, a formidable decentralization is being achieved, decentralized finance (DeFi) is developing more and more. And since this is based on technology with principles of transparency, decentralization, freedom of access and security, those of the Blockchain platform are on a very solid pillar.

Diego explains it better than me! It must be understood that they are services provided by smart contracts that work autonomously once deployed on the network. These contracts to provide their financial services, such as guaranteed loans, investment placements, token exchange, etc., need liquidity. This liquidity is provided by the same users who consume its services, who receive a financial reward in exchange for their contribution. Examples of these services are UNISWAP, a platform to exchange tokens; MakerDao, which allows you to issue crypto dollars with a guarantee; AAVE that offers loans and placements, and many others more.

Cryptocurrencies expand through protocols that are born from day one as global instruments without jurisdictional restrictions so its scalability is crucial. Are you going to miss out on this exponential opportunity for open innovation in finance?