Cryptocurrency investors shouldn’t expect govt help when things go south
Investors enter the cryptocurrency space at their own risk, and the authorities should not babysit people who wish to take risks with their money.
- by autobot
- Jan. 24, 2023
- Source article
Publisher object (23)
Investors enter the cryptocurrency space at their own risk, and the authorities should not babysit people who wish to take risks with their money. People should do their own due diligence before they enter this space, and not expect the Government to help when things go south. Holders of cryptocurrency are gambling that the price will go up to attract newcomers to the market to buy over their holdings. It would not matter to these investors whether the key players in the crypto market are holding sufficient reserves or adhere to corporate governance. There are two reasons why people are attracted to crypto. The first is its astronomical rise in the past. The second is that ordinary investors had been crowded out of traditional financial markets, and looked elsewhere to earn returns. Years of low interest rates and massive quantitative easing benefited a small group of large financial players. If the playing field is levelled, ordinary investors will return. The principle of caveat emptor, or buyer beware, applies in every market. The responsibility rests with the people buying crypto products, not the Government.