The experts invited to the Mundo Crypto event warn of the dangers of these assets, which suffered sharp falls in the first half of 2022.
Cryptocurrencies have long been in the crosshairs of financial regulators. From the European Central Bank (ECB) to the International Monetary Fund (IMF) they have warned on countless occasions of the risks involved.
With the strong fall registered in the first half of this year, the cases of fraud or the organization of macro events have increased misgivings towards these assets.
“In the same way that at the end of the 90s everyone wanted to be in the ‘internet boom’ and put a ‘.com’ to any business, now we are at the gates of web 3.0, crypto assets, and the metaverse,” Pablo Gil, head of strategy at XTB and speaker at the controversial event organized by Mundo Crypto, explains to EL ESPAÑOL–Invertia.
Most of the companies that led the first projects of the network of networks in the 1990s ended up disappearing, giving way to other companies that later exploited that technological change.
Now, “the same thing will happen, most of the current projects will not be viable in the future but there will be new ones that will lead the change,” explains Gil.
Crashes
The strong crashes that cryptocurrencies have experienced, especially during the last part of the first semester, have already claimed the first victims. Some cryptocurrencies have failed, and several investment platforms have been doomed to bankruptcy.
Bitcoin, the most famous cryptocurrency, plummeted from nearly $70,000 last November to $17,601 in mid-June. At the same time, Ether, the second largest cryptocurrency, fell from $4,730 to $881.
From those levels, that is, in two and a half months, they have recovered 17% and 78% of their value, trading at around 20,600 and 1,570 dollars, respectively. High volatility is precisely one of the risks referred to by both the National Securities Market Commission (CNMV) and the Bank of Spain when they warn about this type of asset.
More Falls
Despite the fact that “no one has a crystal ball” to know what will happen in the future, Gil points out that “we have not yet seen the bottom of the prices of cryptocurrencies.” That is, he believes that they will continue to fall.
“A huge percentage of them will end up disappearing completely and others will emerge to replace them,” he reiterates. For this reason, “only a small handful will consolidate their position and become highly relevant assets in a few years.”
To invest in cryptocurrencies, Gil gives the same advice as to invest in any other type of financial asset. Getting training, analyzing the risks, diversifying, and investing only the money that is not needed through institutions regulated by the CNMV or its equivalent in other countries, are his basic recommendations.
“Don’t forget that this is a long-distance race and not a sprint. If you are thinking of becoming a millionaire in a short time, it is most likely that you will end up losing all your money”, he adds.
Risks
Gil will be present at the WiZink Center in Madrid to participate in the controversial event organized by Mundo Crypto. He will share a table with the economists Daniel Lacalle and Juan Ramón Rallo to talk “about the current and future economic situation”, about “how the metaverse is going to change our lives” and “about the risks involved in investing in crypto assets”, something he has been doing for years.
The also director of MethodTrading believes that Mundo Crypto “is a magnificent opportunity to openly talk about the opportunities and risks” that cryptocurrencies entail.
By Audy Castaneda
