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Cryptocurrencies versus

© Depositphotos/SergeVo traditional finance

by Milena Radoman

After a huge crisis of confidence, the year 2023 should be a turning point for the world of cryptocurrencies

with, amongst other things, projects to regulate the sector, an upheaval carefully observed by those in
traditional finance.

For the cryptosphere, the year 2022 will have as 2006, speaks of cryptocurrencies as “the linked to the numerous rate hikes by the
been an annus horribilis. Cryptocurrencies, biggest scam in history. For the U Stern main Central Banks in the first quarter
seen as a decentralised and disintermediated School of Business professor, who predicts of 2022; but above all they have suffered
alternative to traditional currencies after the a serious recession in his latest book, more and more scandals. As early as May,
2008 financial crisis, were on the rise. After Megamenaces, “80% of cryptocurrencies it was the stable coin, Terra, pegged to
a 2021 vintage marked by record valuation were scams from the start. Their promoters the value of the dollar, which suddenly
and trading volume ( 14 trillion against bought amborghinis, yachts, villas in the collapsed, losing all its value and, with it,
1.8 trillion in 2020), cryptocurrencies Caribbean and spent huge amounts of the associated cryptocurrency, una, as well
have been on a roller coaster ride: in the money in Miami strip clubs.” For its part, the as its ecosystem. Major players have thus
space of one year, Bitcoin, the best-known Fed has bluntly stated that cryptocurrency- gone bankrupt, such as the Celsius loan
cryptocurrency, has lost around 64% of related activity is “most likely inconsistent platform or the Three Arrows Capital fund
its value, with a high point at the end with safe and sound banking practices.” and Voyager Capital. In ovember came
of March 2022 at almost 48,200 and a Could the schism between cryptocurrencies the FT scandal. The second-largest crypto
low at just under 15,500 at the end of and traditional finance be at its peak exchange in the world declared bankruptcy,
ovember. Observers even speak of a following the discovery of mismanagement
bear market for this sector in crisis, with The debacle caused by the FTX scandal of funds by its CEO, Sam Bankman-Fried.
collateral damage seen in the FT market. ow did it come to this ike other growth The whole industry has been shaken by it,
The economist, ouriel Roubini, known for stocks, cryptocurrencies have certainly with lay-off plans piling up at Coinbase,
having foreseen the subprime crisis as early suffered from the decline in liquidity raken, crypto.com and more. According to

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