Several cryptocurrency industry experts analyze the monumental drop in cryptocurrency trading this year. Uncertainty around rising interest rates, persistent inflation, heavy regulations and poor management of crypto banks and trading platforms are some of the reasons for the collapse.
A panel comprised of several influential personalities in decentralized finance gave their views on the topic in the Around The Blockchain program, which addresses issues related to the cryptocurrency movement.
Panelists included crypto enthusiast and content creator Ben Armstrong, Bitcoin investor Johnny Hopper, cryptocurrency event speaker Randi Hipper and crypto analyst Altcoin Daily.
Plummeting dollar will sink the U.S. economy
According to Ben Armstrong, who is known in the industry as BitBoy Crypto, the recent plunge of the U.S. dollar will eventually completely destroy the U.S. economy and cause hyperinflationary escalation.
During the program, which is streamed on YouTube, the Deezy host quoted words of former US President Donald Trump, in which he predicts that the US currency will collapse due to inflation and the banking crisis.
The recently arrested former president, charged with 34 counts, said that the blame for the economic recession is a consequence of the misguided policies of President Joe Biden’s administration.
“Our currency is collapsing and will no longer be the world standard, which will be our biggest defeat, frankly, in 200 years,” Trump said. “That will take us away from even being a great power,” he added.
“Zero-freedom” policy is killing the industry
On the 80% decline in cryptocurrency trading volume in the country, the panelists offered their opinions. All agreed that the “zero-freedom” policy being promoted by Washington regulators has impacted the market hard.
In this regard Altcoin Daily argued that the two causes of the decline in cryptocurrency trading are the absence of new users and bettors in the crypto market and the widespread acceptance of “big contributors” such as Uniswap and other decentralized exchanges (DEX).
On the expectations of new investors entering decentralized exchange platforms, Johnny Hopper said that the new generation is lazy and are probably preferring to sign up with platforms like Uniswap that are easy to operate.
All four panelists said that despite the notable drop in the number of transactions, that does not mean that the cryptocurrency and decentralized finance sector is going to disappear.
After the crypto winter that started last year there is a rearrangement within the industry. A purification process that is advancing by leaps and bounds and that will leave alive only the best supported projects.
The war of US legislators and regulators against cryptocurrencies is intensifying. Major cryptocurrency exchanges have been hard pressed to comply with imposed regulations.
Intentional attacks against cryptocurrencies
The latest to come under regulatory fire have been Binance and Kraken. Crypto industry leaders believe that the direction U.S. regulatory policy is heading will stifle the crypto sector and innovation.
Katie Haun, founder of Haun Ventures and Coinbase board member, recently wrote an article where she expressed that the crackdown by U.S. financial regulators against the crypto sector is intentional.
She said that financial regulators are taking the opportunity to impose very strong measures against the industry after the crisis unleashed last year from the collapse of projects such as Terra/Moon and high-profile exchange platforms.
Haun accused regulators of bypassing Congress to “try to freeze an entire industry outside of banking services.”
In the former federal prosecutor’s view, crypto companies are being listed among the bad actors as part of a “coordinated regulatory campaign to stymie progress in the sector.”
Meanwhile, regulatory frameworks and legislation that could undermine the nascent industry are also being implemented in other countries. Governments are trying at all costs to prevent the industry from advancing in the way it has done so far.
At a time of industry weakness generated by its own bad actors, financial regulators led by central banks are moving forward with the creation of their own digital currencies: CBDCs or central bank digital currencies.
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