Former Reserve Bank of India (RBI) governor Raghuram G. Rajan said cryptocurrencies as speculative assets hide their scope. Rajan spoke on CNBC International TV and was also a spectator at the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland. “The biggest problem with centralized entities in the cryptocurrency industry is that they have a single point of failure that puts user funds at great risk,” said Unifarm and Dapps co-founder and chief operating officer. Tarusha Mittal told his FE Blockchain.
Rajan further explained that the crash in the price of digital assets over the past year will allow investors to focus on the “true value” of this new technology.
Additionally, it should be noted that the entire cryptocurrency market has shrunk by $1.4 trillion and Bitcoin has lost 60% of its value in 2022. Decentralized Finance (DeFi) must win. Industry, governance and academia must work together to change the model of the modern financial ecosystem,” he added, chairman and director of Bharat Patel, Yudiz Solution.
According to industry experts, the fall in FTX has paid off as it shifts the focus to decentralized organizations. “Assets with speculative value tend to be more volatile. The recent cryptocurrency collapse should be viewed as long-term volatility, not an end,” said a US-based hedge fund investment firm. Hedonova Chief Information Officer (CIO) Suman Bannerjee added.
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