It was a particularly bearish 2022, with bitcoin (quotation BTC) which has recorded a record eight consecutive weekly losses and faces the prospect of a ninth. Amid the negative chatter, Miami Mayor Suarez has maintained his stance on cryptocurrencies.
Investor distress over Fed monetary policy and fears of an economic recession hit riskier assets. The NASDAQ 100 was down 26,9% from one year to the next.
As a result of market stress, bitcoin's correlation with NASDAQ strengthened this year, leaving bitcoin down 38% from one year to the next. For bitcoin, the increased regulatory scrutiny added to the negative sentiment.
Despite the bearish trend, dubbed the “cryptocurrency winter,” cryptocurrency advocates remain steadfast.
Miami Mayor Suarez continues to take a salary in Bitcoin
This week, Mayor Francis Suarez spoke at the World Economic Forum in Davos, representing Miami. The cryptocurrency advocate reportedly told the public that he continues to receive a salary in bitcoin.
However, the mayor of Miami said that: "I'll note, for the record, it's not my only salary."
And he added: "It's a different decision to make than a person would make if their salary were the only source of income in Bitcoin."
Suarez then focused on the usefulness of cryptocurrencies, pointing out that there is a difference between protecting people from fraud and protecting people from loss.
On the topic of losses, Suarez stated that:
"The government has tended over time to try to protect people from losses, but it is not possible to protect people from losses."
Mayor Suarez first announced he would accept a bitcoin salary in November 2021. At the time, bitcoin was heading towards an all-time high of $ 10 on November 68.979, before its lightning-fast collapse. The cryptocurrency winter saw bitcoin slide to its lows this year, May 12, to $ 25.836.
While Mayor Suarez took a more pragmatic stance on cryptocurrencies, others took the opportunity to continue crypto. Central banks and the International Monetary Fund have long taken an anti-cryptocurrency stance and in Davos, things have been no different.
Central banks and IMF use the Davos stage to hit cryptocurrencies
The IMF took the opportunity to speak ill of cryptocurrencies once again, with CEO Kristalina Georgieva comparing cryptocurrencies to pyramid schemes.
Central bankers have also taken the stage against cryptocurrencies. ECB President Christine Lagarde didn't hold back after calling cryptocurrencies worthless over the weekend. Lagarde described cryptocurrencies as:
“Speculative assets, whose value changes enormously over time, and present themselves as currencies, which they are not”.
Bank of France Governor Francois Villeroy de Galhau added that they are not reliable currencies or means of payment. This opinion was echoed by the Governor of the Bank of Thailand Sethaput Suthiwartnarueput.
