These are historically significant periods for investors. A devastating disease has wreaked havoc on the whole earth. Europe is at war, and Russia is in a state of economic suffocation. With inflation reaching its highest level in 40 years, the United States is on the verge of witnessing a double-dip recession. The currency and stock markets are seeing unprecedented levels of volatility on a scale that has not been seen in years. According to the status quo, the old geopolitical order is in the midst of a crisis. Moreover, commodities are trading like meme stocks these days.
Cryptocurrency, a $3 trillion industry that promises to free individuals from the shackles of the global financial system, has emerged.
Cryptocurrencies are becoming more popular among the general public. Five years ago, the market was worth just $14 billion, which was a pittance compared to now. The United States government, among others, is attempting to participate in the digital asset boom to regulate and reinvent a sector that is predominantly out of reach.
On Wednesday, President Joe Biden issued an executive order directing the government to study the risks and advantages of developing a central bank digital currency. The action is effective immediately (CBDC).
CBDCs are not considered cryptocurrencies since a central body controls them, even though they draw inspiration from cryptocurrencies and follow some of the same ideas. The White House will also look at ways to reduce the dangers associated with cryptocurrency for consumers and improve the sector’s economic and technical competitiveness and innovation.
In conjunction with the Beijing Winter Olympic Games, China unveiled its version of a CBDC, known as the digital yuan.
According to the Pew Research Center, 16 percent of Americans have experimented with cryptocurrency trading, use, and investment. According to representatives from the crypto business, that amount is expected to climb significantly.
Al Jazeera quoted Ran Neuner, presenter of CNBC’s Crypto Trader, as saying, “I believe we may be able to refer to 2022 as the year of the huge catalyst for cryptocurrency because what governments have done is drive acceptance.” In the end, they forced individuals to choose between the two systems, leaving them with little option but to escape.