digital currencies They’ve had their ups and downs lately as some billionaires -like Elon Musk- and governments have chosen to give them a boost as legal tender, but they’ve also featured some setbacks like the “cryptocrash” , which happened at the beginning of May 2022 that brought many virtual currencies to a standstill.
Despite this panorama, more and more people choose to venture into the world of cryptocurrencies with the hope of having a medium and long-term investment, despite the volatility that characterizes them.
This is the price of the main cryptocurrencies for this March 4, 2023.
He bitcoins It is trading today at $22,262.95, which implies a change of -5.17% over the past few hours.
The second most popular digital currency on the market, etherealshowed a movement of -5.34% in the last 24 hours, so its value stands at $1,559.38.
In regards to Attach usis trading at $1, so last day it had a 0% move.
For its part, BNB has a value of $288.53, with a change of -3.81%, while the Litecoin It does the same with $88.94 after a variation of -6.63%.
Finally, the dogcoinone of the digital currencies promoted by Elon Musk himself is worth $0.07 after showing a -7% change in the last 24 hours.
In May 2022, cryptocurrencies revealed that no matter how hard they try, they cannot escape the speculative appetiteafter the so-called “crypto winter” or “cryptocrash” caused several digital currencies such as the bitcoin, ethereum and earth moon situation that has left many investors with no savings.
It is called “cryptoinvierno” when prices drop unexpectedly and no improvement is seen or expected over the next six months.
This last episode was carried by several elements: inflation in the world and the proposal to ban the use and extraction of these in Russia, currently in conflict with Ukraine.
This disturbing term also refers not only to the sharp drop in digital currencies, but also to the decline in trading volume and months of market stagnation, a phenomenon that is not new either, since a similar event was experienced only in 2018.
However, the taste in the mouth that the last crisis has left is different from what we experienced four years ago, since this cryptocrash affected all cryptocurrencies in a domino effect and not just a few, so the fear that the negative effects may linger longer is latent.
The latest crisis has led bitcoin to astonishingly 77% drop in value, until reaching the $28,000 mark; while others like Ethereum lost 30.88% of its value during this month. The domino effect has also affected Terra’s stablecoin LUNA, which dropped more than 100% falling from $118 to $0.09, a blow it still cannot recover from.
Despite the current scenario, there are still those who hope that virtual currencies will recover, while others with the same faith have invested in them, profiting from the recent catastrophe which has also left others without savings.
Cryptocurrencies in Argentina: Despite the fact that digital currencies have not been legalized in Argentina, their use has increased after decades of financial instability that citizens have faced, making it one of the Latin American countries with the most large presence of cryptocurrencies. In this sense, President Alberto Fernández suggested its use to fight inflation.
In addition to bitcoin, another of the most popular cryptocurrencies is LUNA, a token with which it is exchanged in the Terra system and which can be purchased on the Tienda Crypto platform. This cryptocurrency managed to reach an all-time high of up to $119.18.
Cryptocurrencies in Mexico: Banco de México (Banxico) has determined that none of the institutions that participate in the national financial system can use or allow operations of any kind through this means of payment.
However, a study carried out in 2022 by the firm Finder, there is a record that in the country there are approximately 12 million Mexicans who own cryptocurrencies, that is 59% of men and 41% of women.
In Mexico, businessman Ricardo Salinas Pliego, one of the wealthiest in the country, has expressed interest in cryptocurrencies and assured that several of his businesses will accept bitcoin in the future, including his bank ; So far, one of its most popular stores is already doing this.
Cryptocurrencies in Peru: The Central Reserve Bank of Peru (BCR) clarified that its mission is not to be the first nor the second central bank to regulate the use of cryptocurrencies, due to the instability that characterizes them. However, a few days ago, the president of the (BCR) assured that the BCR was working on its own digital currency project.
Cryptocurrencies in Colombia: in the South American nation there are more than 500 places where it is allowed to pay with cryptocurrencies. Colombia ranks 14th out of 26 cryptocurrency adoption countries, according to the Finder report.
Cryptocurrencies in Central America: in the government of The Saviorgranted him his vote of confidence and on June 9, 2021 became the first country to legalize bitcoin as legal tender. Additionally, President Nayib Bukele announced plans to create the first Bitcoin City in Conchagua and it would be funded by bitcoin-backed token bonds.
ante a scenario in which the global economy faces various challenges such as inflation, the Russian-Ukrainian war, the impact on supply chains due to the coronavirus pandemic and other elements, governments have started to reconsider previously unimaginable alternatives, such as regularizing cryptocurrencies.
Recently, the president of ParaguayMario Abdo Benítez, vetoed a bill to recognize the mining of the cryptocurrencies as an industrial activity and, taking this into account, establish a percentage to set a consumption quota, among other requirements.
The initiative ―which will continue to be discussed in both chambers to decide whether or not to respect the presidential veto― has given rise to debates on the considerations and the possible scope that it could have, since it must be remembered that El Salvador is the only country in the world to have recognized bitcoin as legal tender.
The Paraguayan project, which had already been previously approved by Congress, proposes that the mining rate of digital currencies does not exceed 15% from the current industrial rate, likewise, it grants permits for service providers and minors.
Another of the most important aspects is that it is proposed create an addiction which specializes only in cryptocurrencies and establishes penalties, as well as other types of measures.
However, the presidential decree alludes to the fact that crypto asset mining is characterized by high power consumption and low labor usage, so cannot be classified as industrial consumptionbut as an intensive electricity consumption which can also compromise the development of the national industry, since the situation could arise in which the country would be forced to import electric energy in the not so distant future.
Regarding the facts, the Central Bank of Paraguay warned that none of the cryptocurrencies that exist today are backed by any monetary authorityTherefore, it is not supervised, it does not guarantee protection or security to those who use it and they are very risky investments.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
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