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The new report from the International Bank of Bank (BRI) emphasizes the disturbing reality. Cross flows in the crypt are $ 600 billion, but with strong domination of speculation. Behind the obvious boom in cryptocurrencies, the world’s finances will gain their old demons.
In short
- Most global crypt flows are motivated by speculation, according to the Bri report.
- Bitcoins and stablecoins also serve as an alternative solution to expensive gears in developing countries.
Crypto: Speculation dominates cross payments by Bri
According to Bri, Nearly $ 600 billion are transmitted via Bitcoins, Ethereum, USDT and USDC in the second quarter of 2024. This number can provide the illusion of massive acceptance of crypto-active. But the reality is quite different.
The institution emphasizes that most of these flows are motivated speculative investment. In other words, they are strongly sensitive to global financing conditions.
Our results emphasize speculative motivation and conditions of global financing As the main engines of native crypto active flows.
The study also sets a clear correlation between restrictive monetary policies and a decrease in volume. In fact, it signals a growing connection between cryptocurrency and traditional financing.
The Crypto Therefore, it is no longer isolated. His behavior is increasingly coping with the behavior of classic risk classes of assets. Volatility is no longer only endogenous for this industry; It is now also dictated by macroeconomic factors.
Crypto: Between payment solution and inflation escape
Despite this strong speculative trend, the report emphasizes concrete use of cryptocurrencies. It refers mainly to international money transfers. Stablecoins and low bitcoins are used on developing markets as an alternative to expensive or uncomfortable banking systems.
High transfer costs and uncontrollable inflation in some regions promote the use of Crypto as a means of payment. The study emphasizes that some countries focus a significant part of the streams. We quote in particular:
- Turkey;
- Russia;
- United States;
- United Kingdom.
In this context, the crypto becomes both Financial instrument for refuge And the gateway to global markets, especially for populations excluded from traditional systems.
Therefore, crypto oscillates between globalized speculative tool and alternative money transfers. The BRI report invites us to reconsider the actual use of these digital assets in the face of increasingly urgent economic and social issues.
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My name is Ariela and I’m 31 years old. I have been in the area of writing a website for 7 years. I have discovered discovery and cryptocurrency for only a few years. But it is a universe that interests me a lot. And subjects treated in the platform allow me to learn more. In my free time, the singer also cultivates a great passion for music and reading (and animals!)
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.