RELIABLE AGENTS AND THEIR IMPACT ON FINANCIAL MARKETS

Greetings, dear readers of this prestigious platform, the issue that concerns us in this installment is of an economic nature and is associated with the incidence of reliable agents in the financial world, in such a way that we will share this type of content through the @Leofinance community, an allied community that values this type of material.

In this sense, it is necessary to take into account and understand that financial or monetary systems start as a product of the combination of fiduciary money and structured credits, according to a hierarchical process based on the liquidity, this in a traditional economy.

Where fiduciary money fulfills various functions, which must coexist with credits to keep the system running, in addition to obtaining stability in it, in other words, we carry out an activity in search of money, we consume the money and later we go to the bank to borrow money to meet our needs.

In an illogical cycle of never ending where many of us are immersed, for which it represents the base that sustains the traditional economy that we all know, it assumes real money as a means of final settlement and credits as a promise in the payments of the money whose process is to delay the final liquidity assumed.

If we analyze the above in depth, we realize that the traditional economy is based on the use of financial assets, which represents second layer money that can become base money previously created, for Therefore, the value of traditional financial assets does not suffer serious modifications when reprinting larger amounts of it, since the surplus ends up reaching the hands of the issuer as a form of payment for the credits issued.

In this way, a monetary system must be based on a good foundation or asset base with a diversity of financial assets that allow money to move in the form of supply and demand and where banks represent the reliable agents or third parties in the traditional economy.

Based on the above, the blockchain economy moves practically in directions similar to the traditional one with certain exceptions since it must maintain a purchase and sale offer to move the active price, however, some projects such as BTC have a finite amount of reproduction, which, once the limit is reached, the aforementioned asset will no longer be produced.

Other important variants is the scalability of the data in this economic model, without forgetting its decentralization, a point that in a certain way ignores the reliable agents and assumes them as security holes where We store our assets independently and at our own risk, either in offline cold wallets or online hot wallets.

Therefore, storing crypto projects as a monery system is extremely cheap and easy without the presence of trusted third parties or intermediaries handling our assets.

In this sense, the fact of maintaining an electronic economy without trusted third parties, makes Bitcoin work in a better way than fiduciary money where asset transfers are executed safely, without intermediaries and under auditable security contracts.

So through bitcoin you can act as your own bank, which represents one of the great attractions for large, medium and small investors who make life in the digital economy.

[1] Garcia and Col. ANALYSIS OF FINANCIAL INTERMEDIATION IN THE SCENARIO OF THE CRISES OF THE TWENTIETH AND TWENTY-FIRST CENTURIES OF THE TWENTIETH AND TWENTY-FIRST CENTURIES: Article: Online Access