British analysts noted that digital currencies are high-risk speculative investments and could be a market bubble.
2 min read
Investing in an asset as volatile as the cryptocurrency market is always a risk. The UK's Financial Conduct Authority (FCA) has warned electronic currency investors that they are in danger of losing all their money. According to analysts, investment risks are compounded by scam activity .
The last few days have been dizzying for cryptic coins. Yesterday, January 12, Bitcoin depreciated about 20% , falling below $ 30,000, after marking a record high of more than $ 40,000 per unit .
$ 41,500.
- Bitcoin (@Bitcoin) January 8, 2021
In this framework, British specialists point out that investments and loan products related to cryptocurrencies carry “very high risks” .
"If consumers invest in these types of products, they must be prepared to lose all their money," warned the FCA.
The body noted that cryptocurrencies are "high-risk speculative investments" and that those who buy them must be sure to understand "what they are investing in, the risks associated with the investment and any regulatory protections that apply ."
For his part, financial analyst Laith Jalaf agrees that the sudden growth of Bitcoin could be a market bubble.
“The regulator is clearly concerned that the high risks already inherent in crypto assets are being compounded by scam activity, as well as unregulated companies targeting consumers with marketing collateral that highlights the rewards, but not the potential. disadvantage of investing in crypto assets ” , explained Jalaf in statements collected by the CNBC channel.
Bitcoin vs. Gold
On the other side are those who predict a promising future for cryptocurrencies. Analysts at JPMorgan said that Bitcoin could rise to $ 146,000 and compete with gold as an "alternative" currency. However, they add that it will only happen if the cryptocurrency's market capitalization increases 4.6 times to match the private sector's investment in gold of $ 2.7 trillion.
At the beginning of 2020, Bitcoin had an average price of $ 7,300 and closed the year at more than $ 29,000. That means an approximate growth of 300% in the last 12 months. As of early December alone, the cryptocurrency was worth about $ 19,000, representing a 53% increase in one month. Then, on January 7, it hit its all-time high of 40,000, dropping to 30,000 just a few days later. For now, it remains fairly stable, oscillating between 32 thousand and 36 thousand dollars per unit.
"lose" - Google News
January 13, 2021 at 04:48AM
https://ift.tt/3nMe5jH
'Prepare to Lose All Your Money', Warn Crypto Investors - Entrepreneur
"lose" - Google News
https://ift.tt/3fa3ADu https://ift.tt/2VWImBB
Bagikan Berita Ini
0 Response to "'Prepare to Lose All Your Money', Warn Crypto Investors - Entrepreneur"
Post a Comment