Most of the major cryptocurrencies were traded at low prices on Tuesday, as market valuations of all cryptocurrencies fell by almost 5% that day to below $ 900 billion. Bitcoin temporarily fell below the $ 20,000 level on Wednesday as the market was affected by many factors, including macroeconomic concerns and cryptocurrency issues.
Is the cryptocurrency crash “justified”?
According to Business InsiderLee Reiners, a former employee of the Federal Reserve Bank of New York, believes authorities should outlaw cryptocurrencies.
In Liners’ view, the current decline in cryptocurrencies is justified by the fact that Bitcoin, the world’s largest cryptocurrency, did not function as “digital gold” in the face of significant inflation. Reiners is currently a professor at Duke University Law School.
Fintech experts have led many other observers by claiming that the biggest crypto bullish ever was entirely caused by the central bank’s ultra-loose monetary policy, which allowed excessive speculation. .. Bitcoin and other high-risk assets remain sluggish as the Federal Reserve begins to raise interest rates quickly to curb inflation.
According to a former Fed supervisor, cryptocurrencies are not worth themselves because they have no cash flow or fundamentals. Reiners also cast cold water on blockchain technology, noting that there is no “killer use case” despite the existence of Bitcoin, which has been the main use since 2009.
A FinTech professor said the term was simply a “favorable” euphemism for the law, in response to participants in the Bitcoin sector who are constantly seeking clarification of regulations.
Reiners has criticized the Lummis-Gillibrand cryptocurrency program, which seeks to eliminate strong Securities and Exchange Commission fans while making the Commodity Futures Trading Commission (CFTC) the main regulator of cryptocurrencies (SECs). Professor Duke claims that the CFTC has provided everything needed for the cryptocurrency business by taking a handy approach to regulation.