The issue of cryptocurrencies is more common in the context of world economies, in recent times, El Salvador adopted one of them as a form of payment in its national territory, which brought comments of support, but there were also not very favorable opinions, especially for the effect that this could have for the economy of that country.
Although there has been a generous opinion on the subject, the truth is that most people do not know what this type of digital currency is all about, and what is more alarming, many have been victims of financial crimes, ranging from fraud, bribery, to the loss of family capital.
So in order to understand the cryptocurrency environment, this time we will dedicate ourselves to know a little more about cryptocurrencies, especially to avoid financial risks.
So, what are cryptocurrencies?
It is a digital asset that uses cryptographic encryption to guarantee and ensure the integrity of transactions. They do not exist in physical form, but are stored in a digital wallet.
Their value varies according to supply, demand and how much they are used in an environment, and prices are often set arbitrarily or without the support of public policy in the countries that use them. When using or knowing about cryptocurrencies, the term “mining” will also be used, which refers to the process necessary to validate the operations or transactions carried out through this type of digital assets.
Current outlook for cryptocurrencies
Although at the beginning this type of monetary value showed interest and several positive scenarios for its use, nowadays the most well-known ones have fallen, especially due to risk warnings, which has been used by its detractors to predict its end. Even with that, specialists in the digital environment see it as a stage of change and not as an extinction.
The most famous, at the moment, is still the Bitcoin, but in the context of 2022 it registered a loss of almost 60% of its value, which was replicated in its peers around the world. Cryptocurrency prices continue to fall, but this is not only limited to the digital environment, as the war between Russia and Ukraine has destabilized economic and commercial operations around the world.
We are facing a complicated situation worldwide, where the threat of a recession continues despite the fact that many countries have managed to recover. It is best to be cautious with these types of economies, especially if you are unfamiliar with how they work. While they may present an opportunity, it may be best to keep the hard-earned gains under the mattress.
