- November 17, 2018
- Posted by: Jay
- Category: BitCoin, Cryptocurrency
Let’s asses whether cryptocurrency is a safe investment. We are frequently reminded that mainstream finance is not immune from manipulation. It was recently reported that several large institutional investors sued sixteen banks for allegedly rigging the Forex currency markets. The suit claims that members of the accused banks conspired to manipulate the markets in chat rooms. Various details of the case have been reported in Reuters, World Finance, and Live Bitcoin News.
These articles remind us that there is a long history of manipulation, fraud, and mishandling of funds in the finance industry. Less, we forget Wells Fargo recently paid a large settlement for opening credit accounts without the knowledge of their customers. Or let’s remember the story of The Big Short and how that all came about because of greed and failures among the institutions that are supposed to protect investors. Who remembers when flash traders figured out how to manipulate the market by locating their servers closest to the exchanges?
When mainstream media makes claim about the criminality and shady nature of cryptocurrency, I think hypocrisy. I think that the pot is calling the kettle black. Sure, some criminal activity hides within cryptocurrency and markets are manipulated by whales. But let’s be realistic and recognize that greed is in people and, as such, a component in all markets.
Similar to the evolution of the internet in the 90’s and dot com boom, the early evolution of cryptocurrencies and blockchains is not for the faint of heart. That said, the risks are similar and the opportunity to be in the game early is still in front of us. The probability of reward is great, and I feel much safer making my investment in cryptocurrencies rather than with the banks.