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Fenix is hired by an international company associated with sports to carry out a market study of soccer in Chile and Uruguay.

DUBLIN and MILAN, July 19, 2023 — Brera Holdings PLC (Nasdaq: BREA) announced that it has signed an agreement for a South American Soccer market study focused on two countries of initial interest, Chile and Uruguay, as recommended by Fenix Consulting, the Company’s regional advisors. This represents Brera Holding’s first potential foray into the rich and talented South American market, home to 10 World Cup trophies, including last year’s winner Argentina and last month’s U-19 World Cup winner Uruguay.

“We look forward to working closely with Fenix Consulting to complete the study. And that the Studio provides candidate teams for Brera Holdings, in the most talent-rich soccer market in the world, which will allow us to continue to execute our social impact mission in a part of the world where we feel we can make a difference.” dijo el director ejecutivo de Brera Holdings, Pierre Galoppi.

Mentions Álvaro FloresFenix Consulting’s CEO, that the opportunity to deliver background information evaluated from a standard point of view according to the traditional processes and rules of mergers and acquisitions at an international level gives a great opportunity to the world of sports, not only professional but also amateur that aspires to reach higher levels. We have seen in the press and on television in recent weeks abundant information about takeover processes in several sports institutions that generate mistrust and therefore prevent the opportunity for world-class investors. Delivering a decision making path is a huge challenge of research and suggestions that we have begun to make based on the classic patterns of any market, but incorporating the social look and community impact Sports in order to provide a means to channel our athletes to a better level.

Gonzalo SantelicesThe Sports Director of Fenix Consulting, who has more than twenty years of experience in national sports as a consultant and strategy, business and finance executive specialized in the soccer and entertainment industry, ratifies the urgent need to deliver standards that allow, as a result of our study, potential candidates to generate an alternative channel for sports growth, and not only in soccer, since we expect to evaluate new emerging disciplines in the future.

Fenix Consulting (www.fenixcyc.cl) has extensive experience in business management, corporate finance and project evaluation and analysis. Particularly in the sports industry, Fenix has experience in providing management and research services to a variety of soccer teams. It also has an established presence in the media and communications sector with a presence that extends throughout Latin America and Europe through its alliances.

Brera Holdings PLC (Nasdaq-: BREA) is focused on expanding its social impact soccer business by developing a global portfolio of emerging soccer and other sports clubs with increased opportunities to win tournament prizes, earn sponsorships and provide other professional soccer services. – and consulting services related to sports.

https://finance.yahoo.com/news/brera-holdings-announces-south-american-125000980.html?guccounter=1

https://www.globenewswire.com/news-release/2023/07/19/2707318/0/en/Brera-Holdings-Announces-South-American-Football-Market-Study-Targeting-Two-Key-Countries-of-Interest.html

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IX MM&ALatin Congress

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MM&A Global Consulting is an international network that provides comprehensive services to multinational companies in the Americas, Europe and Asia. In June of this year, we held the IX MM&ALatin Congress to renew and strengthen our alliances.

What has been the best thing about working in the MM&ALatin network?

Belonging to an international network allows you to meet business sources, lifestyles and enhance your skills, generate synergies and mutual learning.

Through the network, we broaden and deepen the relationship between international companies and multinationals, thanks to mutual collaboration.

In a globalized and highly changing world, it is necessary to have visions and relationships that are beyond borders, in this way we achieve exponential growth, without the need to be everywhere.

IX MM&ALatin Congress

What did you think was the best part of the meeting?

The willingness of each delegation to achieve a common activity for the continent and the efforts of the matrix to make this happen. With this we not only strengthen the current network, but also begin to work so that it continues to expand, in a collaborative manner as it has been up to now.

I believe that there is no better way to achieve a direct business relationship, where we can accurately distinguish the potential of each subsidiary.

What projections do you envision for the future of the network proposed at the IX MM&ALatin Congress?

The projections are very high due to the reach to the East and among our countries. After the pandemic, there is now all the will and the channels to boost all types of business.

What do you think are the main considerations that the network must have in order to be maintained over time?

Essentially, the quality of the services that the entire network achieves with its professionals, the synergy between countries and local services that can be exported and the excellent climate of communication among all participants.

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Cyberday

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CyberDay

Tips to boost your business

Cyberday is a tremendous opportunity to enhance the image of your business as it has become one of the most anticipated days of the year for the vast majority of people, however to achieve good results it is necessary to prepare well and thus achieve fulfill what is promised, which will become a customer experience that allows to obtain a positive mental positioning at the end of the period. In order for you to be well prepared for CyberDay, we share with you tips to boost your business.

Each stage of the sale is important and must be worked on. to achieve a correct performance.

Benefits of participating in CyberDay

1. Recovering ground lost during the pandemic.
2. Through a good digital marketing strategy, increase the reach of the brand both organic and paid.
3. At the end of the period carry out analysis and studies to obtain more information from potential customers and continue to deepen the relationship with them.
4. Evaluate performance, effectiveness and efficiency of your sales platform and the entire sales process, with a customer experience model, according to your medium-term objectives.
5. Renew inventory.
6. Launch new products.
7. Test new products or innovation in current products.

Some recommendations for CyberDay:

It informs in detail the conditions and terms governing promotions, offers, contests or sweepstakes.

– Do not increase prices days before the start of CyberDay, as these practices instead of benefiting affect your image.

– It respects consumer rights, e.g., warranties.
– Informs clearly and timely the after-sales support, in case of questions, complaints or suggestions.
– Respect everything you offer and advertise.
– Implements expedited after-sales channels for communication in case of queries.

Cyberday will take place between May 30 and June 1, 2022.

– If you have an E-commerce, test the whole process beforehand in order to avoid problems during the CyberDay process, which could affect your sales. For example, configuration of prices and delivery times.
– Check your available stock.
– Monitor constantly and correct as soon as possible any inconsistencies that may appear in the development of the CyberDay.

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Customer Experience

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The importance of customer experience

The world is changing at a speed never seen before. Access to information is unlimited and therefore consumers are more informed and share this information with each other.
A dissatisfied customer is a chain of lost potential customers. Customer experience is becoming increasingly relevant.
What is customer experience?
It is the generation of emotional bonds with the customers of your product or service, which will result in a differentiating element and economic benefit for your business. For this to happen, there must be a value chain that allows this link to be maintained over time.

Customer experience is not only an element of differentiation; it can also have a major impact on the bottom line.

What is the relevance of the customer experience?

– Today it plays a critical role in companies’ ability to differentiate themselves.
– Customer expectations are changing and therefore our businesses must adjust to this new reality.
– Customers do not expect excellence only from large companies; they expect it from any company, it is not a matter of size, but of developing the qualities and capabilities required according to current demands.
Companies have different points of contact with our clients, through which it is possible to obtain relevant information to improve their business. Nowadays it is possible to obtain feedback through surveys (phone calls, emails, etc.) and on the other hand feedback from customers who proactively share their experience.
The challenge lies in what do we do with all this information? How do we structure this valuable feedback?

The objective is to unify the information and then align the entire organization with the customer experience. All this with the final objective of achieving a homogeneous vision and image of the company on the part of the clients.

What does a company that manages customer experience look like?

A company that manages the customer experience has skills distributed throughout the organization, metrics are customer-centric and have been communicated in detail to stakeholders.
– The established tasks are carried out according to plan.
– Roles and responsibilities are clearly established
– Managers monitor the customer experience in a global and continuous way, based on cross-channel KPIs.

Three steps to achieve a great customer experience

1. Why
Perform an analysis of the current situation and from there review in detail the customer’s journey, understanding this journey from the moment he/she decides to “search” for what we offer.
Analyze the root cause of problems throughout the customer journey, at different touch points.
To know the expectations that customers have by segment.

2. The what
Define customer experience design principles:
– Commitments at the different points of contact,
– Roadmap linked to the business model,
– Business plan and the impact of the customer experience on the business plan.

The issue is not to have information but how we use this information to improve the experience with your business, to turn this information into a practical input to solve problems, to improve processes.

3. The how
An appropriate governance model must be developed, as well as KPIs that reflect the commitments to the customer and all the internal steps necessary to be able to fulfill the commitments and make everything that has been stated a regular practice.
Generate incentive plans, based on the outcome of the customer experience.

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How to sell my company?

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How to develop my company and then sell it?

Three technology entrepreneurs sold their company in the middle of the pandemic and are now listed on the American stock exchange. Álvaro Flores, CEO of Fénix Consulting and commercial manager of this alliance, tells us about this success story. How to sell my company?

Arkavia Netowrks case sold to Cerberus Sentinel

Arkavia was founded in January 2010 by David Alfaro, Camilo Garrido and Roberto Arriagada; engineers with various specializations who decided to start their own cybersecurity business, with the clear vision of a growing need for related services.
Their experience and drive has allowed them to successfully face the diverse scenarios that have arisen over time, achieving growth and becoming a reference in the market. Thanks to this development and their positioning in the market, they sold their company and are now preparing to expand in South America.

How is such a leap achieved? How to sell my company?

We talked to Álvaro Flores, CEO of Fénix Consulting. Director and business consultant, he has been dedicated for more than 20 years to organizational consulting and financial advisory services for entrepreneurs, to develop businesses, support them and accompany them in their growth process, including
the eventual sale of the same. In this case, it has been accompanying this technology company in its management committee for eight years, managing to activate the opportunity of its sale and materialize it in a joint work; on this occasion with a Chilean-American team with 1stPMG and AbderaCapital due to the technological specialization of the company.

Basic requirements to sell a company

Essentially, the creation of a culture that allows the creation of value beyond the initial enthusiasm and the natural talents of its owners; that is, the creation of an organizational structure that transforms that initial “project” into a real company with rules, guidelines, procedures and transfer of value to employees and end customers. It’s not just about selling, you have to create that intergovernmental inter no that allows the business to sustain itself despite crises and expansions.

How to achieve the connection between seller and buyer?

How to achieve a connection between seller and buyer? To achieve this, there must be relationships of trust built up over the years. It is a gradual construction, which allows to have a worldwide network of contacts that allows to establish the right channels at the right time. “This network, in our case, is international. With access to financial boutiques in the main markets where they are always looking for opportunities, not only in our country but in the region. Once interest is established after a presentation, the process is activated,” says Alvaro Flores, CEO of Fénix Consulting.

When to think about selling a company?

There are several “triggers” that activate a sale, among them, personal decisions of the owners, such as the need for a change after many years, the family’s transcendence in the organization, the simple fatigue of the partners and/or growth beyond local banking policies, among others. The latter is very common when opportunities start to grow, business is in sight and, suddenly, the classic question arises: where do we get the resources for this business?
As the company grows as an SME, it gains access to SME financing. “It’s simple, we created this armored structure with financial intelligence. However, when we begin to access new business leagues, there comes the anguish of having the capabilities and not having access to financial support; then private instruments arise and among them is the option of selling or merging the company,” says the CEO of Fénix.
Each company has its own stage to grow, consolidate and eventually transform itself through its sale. It is necessary to evaluate the stage, its maturity and build it if necessary.
Through the process of sale or merger of the company, the owners or shareholders can achieve the dream of growing and obtaining a well-deserved patrimonial wealth, which fulfills their expectations of years of personal and family effort.

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Leadership and Team Management

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Leadership and Team Management. Today we find ourselves in a world where technological progress and cultural change are moving at a speed that requires the incorporation of new tools and work competencies that allow us to develop our work and achieve our objectives.

Today, when we talk about leading teams, it is not only about managing, but also about contributing from an integral point of view. This is possible by developing self-leadership and self-management, so that all the skills necessary for effective and coherent leadership can emerge.

It is for these new needs that we have developed a 100% online course, so you can develop it at your own pace and from anywhere in the world.

This course has practical and effective tools.

The Leadership and Team Management course is available in our online academy.

Leadership and Team Management, in Fénix Academy.

www.fenixacadememy.net

In this course, you will not only learn technical tools, but also self-management tools, which are necessary to effectively lead different work teams.


In the course we will talk about the Leader Coach, the Competencies of the current leader, the importance and the reason of Self-Management, Design Thinking, Feedback and its great potential, you will also learn about the Management of difficult situations, among other multiple tools for your personal and professional development.

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IA APPLIED TO SOCCER

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IA APPLIED TO SOCCER.

The scope of the present revolution brought about by Artificial Intelligence based on Big Data and computational algorithms that self-learn and constantly improve their performance, combined with deep automation, robotics, 3D printing and the internet of things, is just beginning to be understood. On the one hand, it is feared that these new and powerful technologies could put millions of people out of work and that we might even question what is really human, since machines are proving that they can do everything much better than we can in all professions and trades where they are applied, even in art. But, on the other hand, they may open up a golden age of infinite possibilities, a new world of extraordinary abundance and solutions to most human problems, where work and money as we know it lose their meaning in the best sense of the word. Sports, and soccer in particular, are no strangers to this phenomenon and we are just beginning to glimpse the potential of what can be achieved with these cutting-edge tools, which promise to completely change the practice of this discipline in the short term.

Artificial intelligence in all areas is here to stay.

One of the little-known aspects of the German national team’s victory in the Brazil 2014 World Cup was the use of an incipient Artificial Intelligence (A.I.) system from the SAP company that allowed them an exhaustive analysis impossible at that time for human capabilities, in order to improve player performances and employ optimized tactics. Marcelo Bielsa became famous, among other things, for the amount of videos he had and with which he traveled to watch and analyze thousands of soccer matches.
Currently, FIFA allows the use of mini vests for teams, with sensors that measure position, distance traveled and some parameters, such as heart rate, sprint accelerations, etc., which has made it possible to optimize physical performance, know when a player is already tired to replace him and reduce potential injuries during training and matches. It is also used to optimize nutrition and improve results when recruiting players.
But this is just the beginning… If the right algorithms are built, the possibilities are staggering, as has happened and is happening in many professions and activities today. A plausible scenario to imagine could be the following:

AI applied to soccer

A.I. makes it possible to analyze in an astonishingly short period of time all the information accumulated by the devices currently allowed and, in addition, to cross-reference it with other types of information on each player and the opposing team. And, not only sports information, but also what is on social networks, add the weather, the state of the field, the history and performance of each team, add the judges of the match and their tendencies, to finally offer the coach a strategy suggestion impossible to perform by a human being; even if allowed, a properly trained algorithm and with some sensors and cameras, could eventually replace a soccer coach in the near future, with unsurpassed real-time analysis and without favoritism for any player or emotional factors that affect people. In the case of soccer judges, their almost total replacement, on the court and in the VAR room, by an A.I. system is imminent, as happened recently in tennis tournaments, where the debut of these technologies to replace line judges was brought forward due to the pandemic, with overwhelmingly perfect results.

Similarities with chess

Making a comparison with chess, machines were able to surpass human beings as they became more intelligent, thanks to their progressively greater data processing capacity.
In chess, a machine observing a match between two opponents analyzes thousands of probabilities in a second and can predict an outcome quite accurately.
If there were sufficient data processing capacity, the same could happen in soccer, a well-designed algorithm could predict the outcome of a match. Currently, there are algorithms that read something written by a person and can deliver a complete psychological profile in a matter of seconds. Sports bookmakers are developing and training algorithms for use in outcome predictions, and processing power will no longer be limited when another, much more powerful tool, quantum computing, begins to be used.

Conclusions AI Applied to Soccer

The development of this revolution called Artificial Intelligence has implications of such depth and scope that some specialists have come to see the possibility that human beings will manage to build a sort of computational deity, which will be all-powerful, omnipresent and omniscient, which has already given rise to the birth of two new religions to worship the coming digital entity.

Beyond these curious facts, since the revolution that started this phenomenon in 2002, with a new method of applying statistical programs in baseball by Peter Brand and Billy Beane in the Oakland Athletics, the need and usefulness of adopting these technologies and making intensive use of them by soccer clubs and sports in general, in addition to having a professional in these matters to advise the coaching staff and management, has become more and more evident. Spain’s Barcelona Football Club, for example, works with data scientist Javier Fernandez and Manchester City has just hired Laurie Shaw as chief artificial intelligence scientist.

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Administration and Finance Leader

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Administration and Finance Leader:
This activity usually has a bias on the part of the rest of the areas of the organization, the person who “sees the money”, however, and although the phrase is correct, there are a series of activities that are invisible to the rest of the collaborators. In a certain way, it is an absolutely critical function since it is the processor of all the information and commercial flows, and its job is to capture, process and report the results of these processes in a timely manner as required by the general management.

The Administration and Finance Leader is not always well understood by his peers

This role of control and norms is not always well received by more creative areas where control covers a small space in their way of seeing the work, therefore, some very common professional friction is generated. The personality of this leader must then be special, with temperance and zeal for intense rigor, but with the criteria of being able to “reconcile” with his peers in pursuit of a common good, as long as this is within a reasonable framework. Por esta razón este líder cumple muchas veces el rol de reemplazo natural de las altas gerencias. aFor this reason, this leader often fulfills the role of natural replacement for senior management.

Working Capital

For those who then assume that “he who sees the money” only cares about that, we must inform them that the correct term is working capital, a concept that refers to the economic resource that allows both purchases and the company’s fixed cost It is always financed, that the money is not lacking. This permanent analysis of the gaps between what I sell and collect against all obligations is a very stressful and daily task from which the rest only see final results.

Administration and Finance Leader

Another key activity is the recording of all these movements in an accounting that allows for comparative analysis of figures, where the sales and purchase budgets made by the other areas are reflected in their reality. Many times this generates new friction where each area defends its own figures and the administration and finance leader is the counterpart. Therefore, he must be one hundred percent sure of his figures in order to align the other areas. This requires a lot of analysis and previous contrasts, again invisible to the rest.

Management with other areas

When the above works well, accounting becomes a management and projection tool and sensitivity analysis on future closing scenarios, which helps decision-making on investment, purchases, taxes, etc.
Depending on the size of the business, it is very common to find that this leader must manage the areas of human resources or people management, for which he must have a permanent update of the current labor regulations together with security controls, that is, he must ensure that the remunerations are correctly applied, that the contracts are updated, that the security measures are of normal use, since each one of these elements that are out of norm imply fines and punishments from the supervisory entities. Therefore, here as in many activities of this leader there is little applause and there is a high risk of calls for attention when a procedure is not followed.

More activities than they seem: Administration and Finance Leader

In tax matters, it must always be updated, because according to the changes in regulations in each country, a business could go from being profitable to having losses only due to a mistaken application of the appropriate regulations.
In tax matters, it must always be updated, because according to the changes in regulations in each country, a business could go from being profitable to having losses only due to a mistaken application of the appropriate regulations. And also have a number of natural contingencies of any organization. And as always without losing sight of any of the initial points mentioned.
I repeat, this leader must have a deep closeness to order and temperance, only then will he be able to make his function a role of personal and professional excellence.

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Keys of the Commercial Leader

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Keys of the Commercial Leader.

In a globalized world, the different activities almost always border on the need to trade or sell to some degree. The market is full of professionals who “fell” in the need to start selling. Selling is inherent to all activities because we always depend on third parties who accept the results of our functions, the student who presents his work, a thesis, the professional who delivers a report to his boss, etc. We are always processing a “sale”. In a more direct role, the commercial activity that incorporates sales, among other things, is not only that, it usually has a degree of intuitive inspiration on what to do, what to sell, how to do it?

What to sell? How to sell?

But clearly there is proven methodology in organizations that have already established guidelines for this. It is very easy to get lost in the sea of activity that surrounds a sale and very simple to be ineffective. On this point, it is necessary to do a professional benchmark and thus find out what are the critical activities of a successful business leader. We can mention a few but they are based on the correct identification of a business model, the design of what we do, how we do it and for whom we do it, the idea embodied in a model allows us to identify the added value of our activity for the end customer and that gives us a route, focus, orientation.

Keys of the Commercial Leader

This is where the search for the appropriate sales force for this model arises. Defining the profiles of a salesperson is not an easy thing, much less the search, which is why eliminating the uncertainty gaps with the model is so critical. The next stage is the generation of clients, prospecting, quoting, negotiating and closing in a continuous cycle of feeding a large business tube, the so-called pipeline, funnel in the traditional literature. The concept is simple, I must assume that the probabilities that the final sale will always be a percentage of all the prospects or leads that I have registered, it would be an exceptional case if all of them were billed, but the usual thing is a measure that each business must determine, for example, of 10 businesses entered, I close 3 or 2, the conversion rate is around 25%.

CRM, customer relationship management. What are we talking about?

This tells me that if I need a monthly billing number, I should always have that number multiplied by 4 in order to reach my goals. And since sales cycles also vary, in order to have one, two, three more months of billing that I need (and my commissions!) I must feed this tube today.
They will understand that when the business requires dozens of prospects, managing this becomes very complex. But for that there are systems such as a CRM, customer relationship management, acronyms that mean customer relationship management. There are a number of programs, some simple and others very sophisticated, where sellers must leave their daily activities, calls, emails, quotes, reminders, meeting schedules, etc. On the one hand, the system provides updated reports and, on the other, support from agenda that reminds meetings to direct mail and cell phones, so as not to miss any opportunity.

Integrating a variety of managements is the key

This activity consumes a lot of the leader’s time when salespeople are not used to registering.
This is how the day of the commercial leader is consuming. But there are still other management tasks with other teams, such as marketing, which must be given a series of inputs, guidelines, documents to carry out its work and generate lead capture campaigns, positioning of the company in new markets, loyalty, etc And finally there are the coordinations with the logistics areas, which today have become a very relevant link in the customer’s shopping experience, positively or negatively affecting all the activities previously carried out, therefore, having an alignment Clear delivery policies, guarantees, changes and returns should always be on the commercial leader’s radar, since all this is part of the commercial leader’s keys.

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The World of Cryptocurrencies

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The World of Cryptocurrencies

Very frequently we are hearing information about bitcoin moving with a lot of volatility, that there is no regulation of them, some that say that it is a bubble and others that it will be the future of the financial business. All this seems something far away even for our reality far from the markets traded by the great powers. But since this world is at breakneck speed, I had the opportunity to meet one of the world’s largest crypto brokers and almost simultaneously a foreign provider asks us to pay him in bitcoin and not in the usual currency. This generated consultations with local regulations, opening the door to the world of cryptocurrencies.

What are cryptocurrencies and how do they work?

Cryptocurrencies are a new asset class designed to function as a medium of exchange. The first cryptocurrency was designed in 2008 and first entered into circulation in 2009; that first cryptocurrency is Bitcoin.
As of today, there are more than 8,400 cryptocurrencies in circulation and it is expected that the number of coins and their value will continue to increase in the near future.
The first cryptocurrencies were conceived as a means of transferring and preserving value like any sovereign currency and precious metals such as gold and silver. Subsequently, other uses have been developed, including content distribution platforms such as YouTube, social networks such as Facebook and storage sites such as Dropbox, just to mention a few.

Who invented cryptocurrencies?

In October 2008, an author or group of authors under the pseudonym Satoshi Nakamoto published a text called “Bitcoin: A Peer-to-Peer Electronic Cash System” in which the bases on which a decentralized digital currency is proposed, that is to say, that it does not depend on or is supported by a central authority (government) and that it does not require an intermediary to be carried out, but is entirely maintained by the network of users (nodes) that uses it.
In technical terms and trying to summarize.

How do cryptocurrencies work?

Cryptocurrencies are based on a technology known as “Blockchain” (chain of blocks) proposed by Nakamoto in his original text. The blockchain is in accounting terms a distributed ledger (book where accounting transactions are kept and recorded) (anyone can have a copy of the ledger) and is programmed to be updated every certain amount of time, in Bitcoin. These blocks concentrate all the transactions made in that space of time and are validated by the users in order to maintain the integrity of the network. If there is a block that is adulterated or different from the rest, it is automatically discarded and invalidated, so it is not part of the chain.
The participants (nodes) that act as validators and protectors of the network are known as miners. Miners use computer processing power (electricity) to solve a mathematical problem designed by the system. The first node to solve the problem is rewarded with coins for the service provided to the network as well as rewards for the expenses incurred in performing this task; in the case of Bitcoin, the reward is 12.5 BTC
In summary, mining has two objectives:

1) Ensure the integrity of the network and

2) Establish the mechanism by which new currencies are introduced into the system.

Are cryptocurrencies money?

The first reaction that many people have when reading or hearing that Bitcoin is a form of digital money is skepticism. Why does it have value if there is nothing to back it up? How can I trust a currency that is not regulated? Who and how determines the value? These are some of the most common questions. To better understand it is healthy to remember what parameters have what we accept today without problems as money.
Money characteristics:
Money is a tool that facilitates the exchange of goods and services in a society. By definition, for an asset to be considered money, it must fulfill the following three functions:
1. To be an instrument to transfer value
2. To be an instrument to store value
To be an instrument that can be used to measure and compare value.

A bit of history

In 1944 an agreement known as the Bretton Woods Agreement was reached in which 44 countries agreed to the creation of sovereign currencies pegged to the dollar while the dollar was pegged to gold. In 1971, the U.S. government cancelled the convertibility of the dollar to gold and thus most of the world’s currencies were left with no backing other than the issuing government’s promise to pay. This system is known as fiat money and is used by most countries today. This means that pesos, dollars and other sovereign currencies, unlike popular beliefs, are not backed by anything more than a promise to pay.
In short, a 1000 peso bill is worth that much because we trust that tomorrow someone else will accept it and take it as valid for a value equivalent to 1000 pesos without having an intrinsic value. Let’s remember that at the end of the day, a ticket is a piece of paper.
Digital currencies fulfill the functions of money and also share its properties. Let’s take Bitcoin as an example: Bitcoin can be used to make transfers of value almost instantaneously and at a very low cost to any part of the world. It also fulfills the function of preserving value, it is enough to have a “Wallet” to store them safely. Additionally, Bitcoin is highly portable, liquid, divisible (up to 8 units), that is, the smallest unit of Bitcoin is 0.00000001 BTC also known as “Satoshi” in honor of its creator and it is also highly secure and practically indestructible. This is how the world of cryptocurrencies works.

The world of cryptocurrencies

It is for these reasons that Bitcoin and other cryptocurrencies can be considered a form of money. Like the current monetary system based on a promise to pay and a collective agreement to be accepted as a means of payment, Bitcoin has value because its user network has determined it based on supply and demand. In addition, Bitcoin generates value for society today by being used as an additional tool for trade, it also offers a savings option to populations that do not have access to banking, and serves as a hedging tool for sovereign currencies in crisis. economic and political.
There are already a number of industrial and banking companies that have accepted this currency such as Tesla, PayPal and BBVA along with countries like the USA, Japan, China and others that have cryptocurrency assets circulating. Many countries are seriously analyzing the incorporation of this type of currency through their central banks.
This is mainly due to the ease and cost savings of transfers without intermediaries and at almost instantaneous speed.
Traditional banks are forced to mutate, since there are platforms that allow you to broker cryptos as local currency, transfer to any part of the world and even take placements with a crypto base, dollar, gold or other assets.
A lot of information to digest suddenly, but it is what is already in force and growing.

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