Posted on 03/17/2022 5:31:08 AM PDT by Oldeconomybuyer
LONDON, March 17 (Reuters) - Consumers risk losing all their money invested in cryptoassets and could fall prey to scams, the European Union's securities, banking and insurance watchdogs said in a joint statement on Thursday.
"Consumers face the very real possibility of losing all their invested money if they buy these assets," the three EU authorities said in a statement.
It marks a racheting up of direct warnings to consumers about cryptoassets by EU authorities, spelling out that consumers have no protections or recourse to compensation under existing EU financial services law.
Regulators are increasingly worried that more consumers are buying 17,000 different cryptoassets, including bitcoin and ether, which account for 60% of the market, without being fully aware of the risks, the regulators said.
"Consumers should be alert to the risks of misleading advertisements, including via social media and influencers. Consumers should be particularly wary of promised fast or high returns, especially those that look too good to be true," the statement said.
(Excerpt) Read more at finance.yahoo.com ...
I’ve diversified into tulip bulbs.
most people involved in crypto are aware of this. its outside the regulated banking industry. there are no guarantees or insurance.
Crypto as it stands now can be very risky. That is it’s disadvantage but also it’s advantage because risks can pay off. Probably the best advice is that given to people investing in options and and futures - the best way to make a small fortune in crypto is to start with a large one.
The EU just passed rules that were pretty benign towards crypto.
This warning sounds a little desperate.
Hard to do the Great Reset (no more paper money) with Crypto being around.
I tell people if you want to do speculative betting, keep it to 5-10% of your total net worth. That’s true for crypto, highly risky super growth stocks, gold/silver or a beanie baby. The rest should be fairly boring - broad stock portfolio, broad bond portfolio and diversified real estate & rental properties
Just a warning about scams. There have been coins that people started, other people bought a bunch of and then the people who started it disappear.
Translation:
“We’re gonna eff you over and take your money like you were a Canadian trucker, but we need someone to blame it on. Some darn crypto-hacker stole it - sorry!!!”
If government was worth it’s salt, government would protect people from crime. However, Governments are criminal enterprizes and utilize every means at their fingertips to gain advantage for the people in positions and sometimes for their nations as well. Our intelligence agencies SOPs make it impossible for crime to be wiped out in the electrinic age.
As for crypto this is so misleading - governments have been trying to keep people from investing all the while billionaires who fund politicians are doing it themselves.
The little people have a chance to increase their wealth and dependence on government as it should be possible given that government no longer looks out for the common-wealth.
I really, really hate crypto, especially Bitcoin. Most crypto is crap, but even those bitcoins can lose value, and the price is very volatile.
I am very, very happy to hold my US dollars which only lose 10% per year of their purchasing power. However, I can’t wait until there is a central bank digital currency (CBDC), so I don’t have to deal with the icky paper money. I like being poor, and pretty soon I’ll own nothing and be happy.
—”the best way to make a small fortune in crypto is to start with a large one.”
A friend had his brother show up one night with shopping bags full of CASH! Over $50,000! And ask that he put in a safe deposit box so he could save some of his winnings.
He and been playing the 1980s “Airplane Game”; https://en.wikipedia.org/wiki/Airplane_game
A few weeks later he retrieved his cash, paid off his car and lost the rest.
Of course there are risks. That said, cryptocurrency has been the #1 performing asset class in the last decade.
Fiat currency has risks too. All fiat currencies in history have failed. Yes, all of them. Currently the dollar is losing 15% of its value every year. Stocks are hugely over valued by historical standards. Housing is currently in a bubble after a massive run up the last couple years.
They are all risky right now.
That’s right! Put your money in US dollars.
Oh, wait a minute...
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