Crypto crashes, bankruptcies spark calls for tighter regulations even as users demand less rules
‘CRYPTOCURRENCIES ARE SPECULATION’
Studies have shown that roughly three-quarters of all people who have ever bought bitcoin have ended up worse off.
“Cryptocurrencies are speculation,” said Dr Nicholas Weaver, a lecturer at the University of California, Berkeley’s International Computer Science Institute.
“The only value in a cryptocurrency is what somebody else will pay more for later. A greater fool. Eventually, the system runs out of fools, and if you’re the last one, you will lose everything.”
When Terra Luna — which used to rank among the top 10 most valuable cryptocurrencies — plummeted 98 per cent in value overnight last summer, some people lost their entire life savings.
From this year, however, things could turn out differently.
The US Treasury said crypto now needs “adequate regulation”, which includes the protection and segregation of customer assets.
The White House is also urging Congress to implement President Joe Biden’s suggested reforms, one of which includes a digital dollar — a digital currency that is fully regulated and backed by the central bank.
US Federal Reserve chair Jerome Powell has told lawmakers such a move would eliminate the need for other crypto coins.