Two recent events tell me that the mania for Bitcoins and other digital currencies is alive and well, while I am still stuck in the dark ages and prefer to invest in companies that produce something.
On the way home by train from central London today sat next to me were two young ladies obviously returning from doing some Christmas shopping in the West End. They were discussing what to give to young children for xmas. One mentioned that they knew kids who had been given Bitcoins as an xmas present.
Secondly when I was in my local bank last week, someone was in there to transfer cash to a foreign based coin exchange or broker. The counter clerk queried it but let it go through.
The FCA banned the sale of crypto-derivatives to retail customers in October 2020 and later issued a warning to retail investors of the risks associated with other cryptoasset-related investments, stating that those who choose to invest should be prepared to lose the full amount of their investment. But are they really doing enough to educate the general public about the risks associated with such assets? I don’t think so.
But giving Bitcoins to young children may of course be very educational. They might learn that when something is valued not on any intrinsic merit or future income potential but on what speculators are willing to pay for it then it’s going to be a very volatile asset.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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