The excitement peaked when the cryptocurrency exchange Coinbase was unveiled at a valuation of $ 85 billion last April and attracted the attention of the industry. Bitcoin has exceeded $ 60,000 for the first time.
Last summer, El Salvador announced that it would be the first country to classify Bitcoin as fiat currency alongside the US dollar. The president of the country has updated his Twitter profile picture to include Laser Eye, the calling card for Bitcoin followers.The value of a $ 105 million investment in Bitcoin in El Salvador is Cut in half Because the price has dropped.
Senators and mayors across the United States have begun to market cryptocurrencies as the industry has spent so much money on lobbying. New York Mayor Erik Adams, elected in November, said he would receive the first three salaries in Bitcoin. Senator Cynthia Lummis, a Republican in Wyoming, and Kirsten Gillibrand, a Democrat in New York, have proposed legislation to create a regulatory framework for the industry, at institutions where crypto companies have openly opened courts. It has given more authority to a Commodity Futures Trading Commission.
Through enthusiasm, celebrities have whipped their NFTs on talk shows and fueled the fear of missing out on talking about blockchain projects on social media. This year, the Super Bowl featured four ads for crypto companies, including Matt Damon, who warns viewers that “luck is in favor of the brave.”
Its overwhelming optimism diminished this spring as stock markets plunged, inflation soared, and layoffs hit the tech sector. Investors began to lose confidence in crypto investments and moved their money to less risky assets. Several well-known projects crashed during the withdrawal. Both TerraUSD, the so-called stablecoin, and TerraFormLabs, the creator of the experimental crypto bank Celsius, have collapsed, wiping out billions of values and boosting the wider market.
“The cyclical flow of money raises the question of whether this entire ecosystem always needs outsiders to maintain it,” Farrokhnia said.
