The crypto market and decentralization are taking hold after the banking crash that began, say experts, with the collapse of SVB. One of the main reasons why millions of users have begun to fear the centralization of assets.
Last Friday, March 10, the U.S. authorities closed Silicon Valley Bank. An event that left millions of users without their funds. Funds equivalent to more than $1.8 billion that were presumed to be well safeguarded in SVB; a bank recognized for providing its service to entrepreneurs and accompanying them in their development as businessmen.
A few months ago, SVB placed its funds in bonds so that its assets would not be devalued due to inflation. However, inflation was on the rise and the bonds were trapped in the long term, leaving users unable to withdraw the money from their bank accounts.
After SVB’s closure, the main authorities in the US and Europe lowered its shares and in the desire to protect their assets, users have begun to look for new alternatives because more and more people do not want their money to depend on the decision of a third party, and this is how they have become even more interested in the crypto market.
The decentralized crypto market is characterized by the fact that there is no one axis or dome that decides over the rest. It seems that, contrary to the arguments of the detractors of cryptoassets and blockchain technology, this technology may be the next evolutionary process of what we know as the financial system.
Some of the multiple benefits of these developments are:
o No need for intermediaries to carry out transactions.
o Simplifies processes and solves problems faster.
o Improves the quality of commercial agreements.
For now, the biggest benefit for the cryptocurrency market is people’s growing interest in a decentralized option. However, nothing has been said and the technology continues to develop.