As a basic foundation of the financial market, the law of supply and demand usually determines the price of anything you want to sell. The secondary relationship between stock and production will necessarily define the asset's lower and upper point, depending on the existing competition.
With these four aspects: supply, demand, stock and production, the relationships between the producer, the consumer and the average market price are defined empirically or regularly.
The average market price will invariably define the relationship between productive inputs, priority needs and the amount of demand in the market as a whole.
If the financial market, based on these factors, understands that there is a problem, it tends to trigger different levels of regulation. In fact, for equal problems, equal resolutions, in theory.
The regulation starts to verify, within the above mechanisms, which factors, unregulated, are being speculated.
Speculation, in short, is attacking any of these factors in order to obtain advantages, or privileges, in the decompensation of the factors.
All this being economic theory, the question remains:
Are cryptocurrencies holding these factors to such an extent that they are regulated as financial assets or as tradable products?
Currently, in the European discussion about the fundamentals of cryptocurrencies, much is said about cryptocurrencies as tradable financial products.
But then is the cryptocurrency investor really just a consumer?
And as a consumer, would you be protected by consumer protection laws?
But if the investor of cryptocurrencies is in fact an investor, then cryptocurrencies, as a financial asset, and not as a tradable product, should be treated.
If it is a financial asset, then gains or losses should be handled by traditional regulation.
In this way, whatever the way to be treated, there are laws and regulations.
The problem, in fact, is that until it is defined, cryptocurrencies remain in a gray area, without an era or border. Lawless land!
Thinking about it: Who cares about this lawless land?
