Jon Cunliffe (Deputy Governor of the Bank of England) draws a parallel between the recent cryptocurrency crashes and the dotcom bubble crisis of the 2000s.
For Jon Cunliffe is the Deputy Governor of the Bank of England, although the cryptocurrency market has fallen from a capitalization of $3 trillion last November to $954 billion today, according to data from coingecko, Jon Cunliffe still believes in the potential of certain actors.
“Technology has not disappeared”.
Jon Cunliffe, in particular, draws a parallel between the recent cryptocurrency crashes, and the collapse of the dot-com bubble in the early 2000s, which led to today’s tech giants.
“Although many companies have gone bankrupt, the technology has not disappeared. It came back 10 years later, and the dominant players — Amazon and eBay — turned out to be dominant,” he said at the Point Zero Forum in Zurich, as Bloomberg reports. -active in the coming months, I expect crypto finance and technology to continue.” According to him, they have the potential to bring huge changes to the market and improve efficiency.”
This begs the question: Who will be the next tech giants? There are a few companies that seem to be coming out of the woodwork in the current environment. One of them is the FTX exchange and Binance, which wants to hire more than 2,000 additional employees, while all its competitors reduce their workforce.
The latter seems to have changed his mind about crypto-currencies in just a few months. Jon Cunliffe warned in December of the danger of contagion between cryptocurrencies and traditional finance in the event of a sharp drop in cryptocurrencies.
He said their price can fluctuate quite wildly and could theoretically or actually drop to zero, in an interview with the BBC. “I think the time to worry is when they become part of the financial system. This is when a major price correction could affect other markets and financial market participants.
“No intrinsic value“
Despite this shift in perspective, the Bank of England still remains skeptical of cryptocurrencies.
Andrew Bailey, the Governor of the Bank of England said on June 13 that cryptocurrencies had “no intrinsic value” after the cryptocurrency market crashed. This statement is in line with the words of Christine Lagarde (President of the European Central Bank).
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