Co-founder of the independent Blockchain Partner office, Alexandre Stachchenko is also Blockchain & Cryptos Director at KPMG France. Former colleague of Claire Balva (whose interview you can find here) returns for The Blog on the difficulties encountered by the cryptocurrency market in 2022. Interview in the form of a review.
Last year, cryptocurrencies experienced a bear market that has now gone down in history. What do you think of this fall that has particularly hurt these risky assets, and in particular Bitcoin, with a 64% drop in its capitalization?
The diminish it is not due to just one factor, but to several. For starters, there’s the effect of cycles, why every three to four years, the cryptocurrency market purges. However, I see that there are fundamentally deeper reasons and above all linked to the novelties of 2022, such as the increase in interest rates or the acquisition of institutional investorswho can now tip the balance in one direction or the other given the importance of their purchases.
The role of people should also be underlined. The latter are generally looking for short-term gains, panic as soon as the market turnsthus helping to fuel the volatility of the bitcoins and Altcoins in general.
Finally, beware of the pseudo-influencers who abound on social media and recommend investing in this or that project. Some investors have left a lot of feathers there. As with any risky investment, easy money does not exist!
Are there any more positive points to remember from this general purge?
Losing your invested money has never made anyone happy, that much is obvious. However, this bear market has license to wash the market. This cleansing, let’s call it that, was necessary, as it ultimately allows put the spotlight on the strongest projects and who holds the road. Furthermore, in KPMG the observation is clear, during the year 2022 I have been much less solicited by “bizarre” projects or not based on anything concrete.
Sure, to get even stronger adoption of cryptocurrencies, down cycles shouldn’t be that intense, but the the fundamentals are solid, both in terms of technology and safety. On the other hand, I think this leaching period will continue last a while.
Read also Jonathan Herscovici (StackinSat): “The fall of FTX is a cataclysm for the crypto ecosystem”
Final approval of MiCA in Europe will be voted on during the first quarter of 2023, before going into effect 12-18 months later. Could this new year finally be one of full-scale regulation?
It is legitimate for a sovereign area to ask itself how to protect itself. There is however a difference in approach clear about how Americans and Europeans, for example, see this regulation crypto. The first favorite let the ecosystem build itself so that the flagships can emerge and become world leaders. It is only now, when control is being imposed on almost everyone, that the question of regulation is beginning to be considered.
In Europe, we have opted for the opposite approach, ie act first to ensure we are pioneers in regulation globally, even at the cost of imposing disproportionate control compared to the risks assumed. There are good things inside Not and TFR, but also totally crazy considerations. the mining is particularly at risk and there is a concrete risk of going towards a excessive surveillance of crypto wallets owned by consumers. We could like this lose sovereignty because Europe wanted to put the cart before the horse.