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.
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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.
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.
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.
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.
The IFA market certainly doesn't recommend crypto as an asset class (perhaps we will one day) but if we did it would be a very small part of a diversified portfolio. Yes, this is boring but it also means that bad days are just that, and not devastating to someone's financial future.
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