Cryptocurrency Broke: “I Hate Myself For Believing … It Was Easy To Become A Millionaire”

Illustration of the drop in the price of bitcoin on June 18

Bitcoin at historic lows, market collapsing, layoffs in start-ups in the sector, the state of El Salvador in the red … The whole sphere of “cryptos” is suffering a real collapse.
“Last week my loss was over 800 euros, well, I don’t dare to look anymore…”, confides Wael, 20, half amused and half worried. Last year he invested in the UOS cryptocurrency, created by the company Ultra and backed by video game giant Ubisoft. This delivery boy from the Paris region does not hide it: he left for profit, hoping to “make money easily”, albeit to some degree. He did not put all his savings, only a nest of 1,200 euros, with the idea of ​​”getting on the crypto train before leaving”. However, he has now lost most of his stake, caught in the whirlwind of a collapse in the value of cryptocurrencies, like many investors. Last November, bitcoin peaked at nearly $ 69,000. Today it is worth less than 20,000. A -70% free fall for the cryptocurrency queen. And the correction is even more severe for thousands of other cryptocurrencies, some of which have gone out of business.
In recent years, bitcoin’s surge in value, pushed by selfish speculators, has led those interested in the subject towards a sort of absolute trust in cryptography, as if technology were the (liberal) answer to many financial problems. Except that the collapse of the entire sector, twice as fast as the Nasdaq, the Technology Stock Exchange, in the midst of inflation, has challenged beliefs and certainties. For the economist Marc Touati, president of the ACDEFI cabinet, the mass is said:
“We just saw the crypto bubble burst. Unfortunately, as with other speculative bubbles, most of the small investors arrived just before the collapse and they are the ones who will lose the most ”.
But that didn’t question those who put their money in the computer code lines. Like Clément Vannier, 23, just graduated, who recorded a correction “between 5,000 and 6,000 euros” on his investments in bitcoin and Ethereum. Despite this, this fine cryptocurrency connoisseur puts it in perspective: “Don’t panic. I strongly believed in these technologies and still do. It is a very volatile and unstable environment, and until we have sold, we have not lost. “
There are, however, some rare smaller carriers that are more overwhelmed. Like Daniel, a young Englishman, who shares his dismay on YouTube: “Everyone said that bitcoin would easily exceed $ 100,000, so even buying it for 50,000 I was confident. I invested $ 7,000 in bitcoin and today it’s worth half that … I’m sorry to believe everyone who said it’s easy to become a millionaire with cryptocurrencies. “.
Source (’m-pissed-for-believing-those-who-said-it-was-easy-become a millionaire.html)


The case of El Salvador

The pill is even more difficult for people in El Salvador to swallow. Under the pressure of its young president, Nayib Bukele, the country has made bitcoin its official currency, with a double ambition. First, get rid of the US dollar, which replaced the local currency twenty years ago, while proposing to save bank fees on the money transfers of Salvadorans working abroad (funds that weigh heavily on nearly a quarter of GDP).
But, beyond this momentum, Bukele has also decided to convert over $ 105 million of the country’s money supply into bitcoin. An amount that has since lost more than half of its value to $ 48 million. Not to mention the fact that the entire implementation as legal tender cost about $ 425 million. But Bukele continues to believe it, pointing on Twitter.
Except that his economic bet raises serious concerns. JPMorgan Bank and the International Monetary Fund (IMF) have warned that El Salvador is “on an unsustainable path”, with very large funding needs and exploding public debt. So much so that the agency Fitch Ratings has downgraded the country’s rating, and that the insurance contracts covering a possible non-payment have seen their level increase by over 300%.


The G20 watchdog will propose the first global cryptocurrency rules in October

The Financial Stability Board (FSB) said Monday that it will propose “robust” global rules for cryptocurrencies in October, following the recent market turmoil that highlighted the need to regulate the “speculative” sector.
The FSB, a body made up of regulators, Treasury officials and central bankers from the Group of 20 Economies (G20), has so far limited itself to overseeing the cryptocurrency sector, saying it presents no systemic risk.
But the recent turmoil in cryptocurrency markets has highlighted their volatility, structural vulnerabilities and growing ties to the broader financial system, the FSB said.
“The failure of a market participant, in addition to imposing potentially large losses on investors and threatening market confidence resulting from the crystallization of conduct risks, can also rapidly transmit risks to other parts of the market. ‘Cryptocurrency ecosystem,’ the FSB said in a statement.
The value of bitcoin, the largest cryptocurrency, fell about 70% from its all-time high of $ 69,000 in November and was trading at $ 20,422 on Monday, leaving many investors with losses.
The stablecoin TerraUSD collapsed earlier this year and withdrawals and transfers from major cryptocurrency companies Celsius Network and Voyager Digital have rocked the markets.
Stablecoins should be subject to strict regulation if they are to be used as a means of payment, the FSB said.
The FSB has no legislative power but its members undertake to apply its regulatory principles in their own jurisdictions. The watchdog is lagging behind the European Union, a major member of the FSB, which agreed on comprehensive new rules for the cryptocurrency market this month. The FSB said cryptocurrencies are primarily used for “speculative purposes”, but they do not operate in a “regulatory free space” and must comply with relevant existing regulations. Many countries require cryptocurrency companies to have anti-money laundering controls
Source: © Zonebourse
with Reuters 2022

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