After a sharp drop last week, the stock market is still in recovery mode, and on Wednesday. Wall Street recorded its worst one-day losses since June 2020 . Last week, the Nasdaq also fell 3.8%, falling for the seventh straight week, and this is the longest streak of losses for the technology index. for 21 years . Tech companies haven’t seen a major sell-off. since 2001, when the dot-com bubble burst.
Inflation, rising interest rates, the war in Ukraine and quarantine measures in China are the main reasons for such an unstable market. This has been stressful for investors in technology and growth stocks, especially after such historic rallies in recent years.
The current market needs more investors, but as is typical of bear markets, many are risk-averse and uncertain about future market conditions, fearing losing money in an already volatile market and returning their investments.
In addition to a highly volatile market, the current risk of entering the market includes exposure to hackers and shenanigans, as well as a lack of accountability due to the fact that there are currently so few regulations in place.
What the market needs now is an incentive for investors to re-enter the market. But instead of convincing investors to buy on the fall, cryptocurrency should become a safer investment class to become a more attractive investment.
To do this, the cryptocurrency market should be more regulated. Experienced crypto traders will feel more inclined to buy, making the asset class a safer investment. However, it will also attract non-cryptocurrency and institutional investors who have been wary of investing because of how unregulated it has been so far.
In CNBC article MicroStrategy co-founder and CEO Michael Saylor echoed this sentiment, stating that tightening government regulation of the cryptocurrency would be a positive catalyst for bitcoin. “Additional clarity of regulation on the part of the administration [Байдена] will benefit bitcoin and accelerate the institutional implementation of this asset,” Sailor commented.
Concordium Blockchain ensures accountability, trust and transparency in the market and creates a safer space thanks to integrated level of identification to solve the above problems. The company has created a unique identification mechanism that, on the one hand, increases confidentiality and at the same time facilitates accountability.
Based on the assumption that the need for authentication will lead to greater user responsibility. At the same time, the latter is required to build trust. While many other blockchains still have vague guarantees of anonymity, leading users to believe that they are anonymous, while their actions can still be associated with them.
While regulations can promote identity, Concordium believes that one of the most important issues they can help address is accountability. He wants to create a world where people think before they act because they know they can be held accountable for their actions.
This is one of the attributes of the Concordium network, offering users a balance between privacy (freedom) and accountability . Concordium gives users the ability to design, create and execute transactions responsibly, securely and as required.
Users will benefit from privacy because Concordium uses zero-knowledge proof (ZKP), so their attributes remain between them and the identity verifiers. As a result, transactions will be completely confidential and secure, unless they abuse the system. If the court finds this to be the case, independent third parties will be able to identify illegal actions and ensure that those responsible are brought to justice.
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