City Voice: Bitcoin is no longer gossip at the school gate
‘My solana is pumping’ isn’t a phrase you’d expect to hear at the school gate, but last year the playground was full of crypto speculation. For the tales of big wins in the crypto wild west, parents forgot the PTA power trip gossip and soaring house prices.
And it was not a private school in the Stockbroker Belt, but a regular, state primary in the Southwest, albeit in a relatively prosperous region. In secondary schools, it is teenage students who are clearly trading crypto, just as they once traded football stickers.
After hours of small hours staring at large screens to compile my morning market report, phones were thrown at me at the classroom door, showing the rapid ascent of coins and tokens.
Did these crypto novices do any research into what they were buying? Sometimes. Guided by superstar pundits on social media, they were funneling their cash into coins and tokens, making the biggest gains.
These parents were displaying the full force of FOMO while their children were playing with imaginary light sabers. The fear of getting lost was strong in him. My appeal to stop, watch and listen to the warnings from the Financial Conduct Authority went unheeded. My efforts to get them to be considered low-risk investments were largely ignored. Only one friend cashed out before the accident, which was fantastic upon arrival.
There are hopes that bitcoin and other cryptocurrencies will rise again, like a phoenix from the ashes of this latest crash. hopefully like dot com Boom, the survivors could be the tech stars of the future.
But just like the odds-on favorite reach for the moon Lost at Ascot, they could have been equally disappointed. It is often said that investing in crypto is like supporting a horse. But unlike horse racing, which has centuries of history, the rules of the crypto game are yet to be written.
Regulators around the world have yet to decide how digital currencies should be governed and what role stablecoins and central bank digital currencies will play. Until they do, betting on crypto is like a game of pinning tail on the ass.
Regulators need to step up and try to blindfold, which is leaving so many crypto holders in a dark alley of desperation when losses mount.
In 2021, around 2.3 million Britons held some form of cryptocurrency and 14% of holders had debt to speculate.
Big City voices have tried to grab the megaphone to warn hordes of bookmakers, and have been reserved exclusively for celebrity advertising. When the head of the Financial Conduct Authority spends his time with Kardashian, it’s clear that the clash of celebrity and crypto is causing concern.
(Ms. Kardashian West along with Kim Kardashian and boxer Floyd “Money” Mayweather Jr. are among those being prosecuted in the US for alleged false statements promoting the cryptocurrency EthereumMAX.)
Outgoing FCA president Charles Randall reserved part of his speech for reality star Kim, saying his Instagram story plugging cryptocurrency could be a “financial hype with the largest audience reach in history.”
There were concerns that speculation reached the level last year that a crypto time-bomb was ticking. Unregulated crypto assets grew from $16 billion in 2016 to $2.3 trillion in October.
But the crash has wiped out more than $1 trillion from the value of bitcoin and other currencies.
It has also scuttled the government’s plan to make the UK an investment hub for cryptocurrencies and its innovations. Ministers have high hopes of making the UK tax system more competitive in order to encourage further development of the crypto asset market.
But if the highly experienced management consultants advising large companies to operate in this brave new world do not yet understand the rules of engagement, how are ordinary punters expected to protect themselves from further financial losses.
As long as crypto is nothing short of a game of chance, investors should approach this most serious of currency speculation with caution and only slather on the edge of any portfolio, with money they are prepared to lose.
But if parents want to talk about interest rates, inflation, and the impact on companies, mine is a cappuccino with cinnamon. But it has to be done quickly, because they are pointing at the screen.
Credit: www.standard.co.uk /