Clearly crypto is now considered an asset class that people invest in. People have made a lot of money from it, but it should be very much considered a high risk investment. Here is a cautionary tale. 🧵 www.bbc.co.uk/news/article... - ThreadSky

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glasgowifa.bsky.social • 180 days ago

Clearly crypto is now considered an asset class that people invest in. People have made a lot of money from it, but it should be very much considered a high risk investment. Here is a cautionary tale. 🧵
https://www.bbc.co.uk/news/articles/cze386d3enpo

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glasgowifa.bsky.social•180 days ago

Ultimately with crypto, unlike with shares or cash, there is no company behind it trading, making profits or losses, paying interest or dividends and giving the market some direction of the business in the future. With crypto there is far less information to trade on.

glasgowifa.bsky.social•180 days ago

Clearly the main reason people hold any investment is to make money (other than a small number of controlling shareholders). But with crypto that is the ONLY reason people hold them - and in many cases they expect to make a lot of money quickly.

glasgowifa.bsky.social•180 days ago

Ultimately crypto is the world largest pyramid scheme. There's no company in the background paying dividends, holding physical assets, doing share buy-backs or issues, making profits, mergers etc. The only thing that drives the price is people buying more of it, expecting the value to increase.

glasgowifa.bsky.social•180 days ago

This means that it can be hugely volatile and investments can turn to dust in a matter of seconds, as many people have found out. We remain in the early days of crypto and time will tell if it will become an actual utility in the form of a currency or will always be thought of as investment.

glasgowifa.bsky.social•180 days ago

What Logan Paul is alleged to have done is manipulate the market for personal gain. Something that if he was dealing in publicly traded stocks would almost certainly be an open & shut criminal case.

glasgowifa.bsky.social•180 days ago

Perhaps with crypto he can and will argue that with no business behind it, social media posts are fair game and assuming there are capital at risk warnings, investors have placed a bet and lost.

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