Crypto Ranked 11th Out Of 14 Factors That Pose A Financial Risk

While supporters of conventional finance are still adamant that Bitcoin and the cryptocurrency ecosystem are not financial hazards, a poll by the Federal Reserve Bank of New York discovered 11 characteristics that will make crypto less risky in 2022.

A central bank poll conducted by the Federal Reserve System indicated that some of the most often mentioned possible threats to the U.S. economy were geopolitical tensions, foreign divestments, COVID-19, and rising oil costs.

Cryptocurrency is ranked 11th out of 14 reasons that might put your finances in danger, showing that investor perceptions have changed due to the tireless work of crypto entrepreneurs to spread awareness.

When assessing the dangers of investing in the sector, the US central bank still opposes them. It said in the research showed that several cryptocurrencies had lost almost 69 percent of their value from their peak in November 2021.

“Speculation and risk appetite appear to be the primary driving forces of crypto-asset prices, which have recorded big swings in recent years. Figure A shows the market capitalization of selected crypto-assets (excluding stablecoins), which is currently about 69 percent below its November 2021 peak.”

The power struggle between the world’s economies, which includes, among other things, tensions between the United States and China, the war in Russia and Ukraine, higher energy prices, rising inflation, the COVID-19 pandemic, and cyberattacks, was the subject of some of the respondents’ most urgent risk concerns.

The collapse of the Terra ecosystem was also mentioned by the central bank, which highlighted the fact that companies with direct exposure to TerraUSD had financial difficulties, which occasionally resulted in bankruptcy.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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