Cryptocurrencies have shot up over the past several days. Bitcoin, for example, has gone up past $43,000, while Ethereum has shot past $3,100. Dogecoin has also jumped by more than six percent and is trading for about 15 cents at the time of writing.
Bitcoin Is Doing Better
Bitcoin has been suffering throughout the new year, and while things are certainly up at press time, it’s likely going to be a while before they fully recover. Bitcoin initially rose to about $68,000 per unit in the middle of November last year. People thought it was on top of the world, but unfortunately, it has taken several steps back and in early January, had lost more than half its overall value.
Several analysts are now examining bitcoin and other cryptocurrencies and noticing the steady rises. Micah Carnahan – crypto expert and writer – explained in a recent interview:
Cryptocurrencies seem to be clawing their way back from the brink after weeks of steep price declines shocked investors in the latest market route. The total coin market cap has gained over ten percent in the last week alone as trading fears begin to ease.
Alexander Mamasidikov – co-founder of mobile digital bank Mine Plex – also threw his two cents into the mix, stating:
While inflation remains a big consideration for investors, rotating funds back into supposedly risky assets like BTC is fast becoming an attractive proposition to many. Bitcoin investors are also attempting to decouple from the mainstream stock market, a move that will prevent any serious plunge even as tech stocks continue to take a beating based on the anticipation of a tighter monetary policy from the Fed.
David Lesperance – managing partner and tax adviser at Lesperance & Associates – said:
However, defi platforms have also quickly attracted the attention of regulators. Regulators who are already animated by the lack of anti-money laundering and governance structures in the crypto exchange realm are alarmed by this same failing in defi.
Discussing platforms that use people’s individual staked tokens, he mentioned:
That could indicate beneficial ownership of those tokens has passed and must be treated as a disposal, which incurs capital gains tax.
He also talked about consumer protection in the world of defi, and hinted that at the present time, things aren’t strong enough in this department. He commented:
These issues bring into focus defi’s central tenets of transparency and equality. While bitcoin is further along the curve then defi in dealing with these issues, both are exploding in popularity. Can defi survive….and in what form?
The Crypto Gaming Space Is Growing
Winston Ma – managing partner of Cloud Tree Ventures – said that the crypto space is too large to feel excessive pressure from U.S. regulations. He stated:
Metaverse and gaming-related tokens are supported by seemingly unstoppable mega M&A transactions among gaming and metaverse companies.