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Boom or Bust for Cryptocurrencies?


This was a headline in my local paper earlier this week; in the article the "financial expert" covered the standard issues of risk, lack of regulation and that cryptocurrency is "ideally suited to money laundering and tax evasion". I can think of many people who might be a little upset by that comment. The expert has written a bestselling book on personal finance so I felt compelled to look it up and discovered to my amazement that the author is an IFA.

Aside from the frustration of his article being from someone not best informed and of course designed to continue the disruptive message from the "system" - so ably represented here by an FCA regulated adviser - my biggest issue is that he allows no room for the feint possibility that this is a subject he knows little about and that it might just be worth his audience talking to someone who HAS the knowledge of and experience in this growing sector to obtain a balanced overall view.

Some of the facts quoted are accurate; for example he says cryptocurrencies are not investments but commodities. Cryptocurrency is cash. The writer is only authorised to advise on regulated investments and not I suspect regulated or qualified to advise on commodities. And yet this is exactly what he does. Not "advice" as I understand it but the negative musings I've become accustomed to.

The reality is that the article is proof that financial advisers and others are growing concerned; they know that the money to buy cryptocurrency will come from the bank account, the stock portfolio, the ISA or investment bond.

I respect the author's undoubted knowledge and experience in his space but resent the fact that those of us engaged in believing that regulated investment products are NOT the panacea for all are deluded.

Time will tell of course; it is true that the values of cryptocurrency have fallen since their peak in December 2017. It must be so reassuring to know that the stock markets are so universally calm all of the time and completely ring fenced from geo political events, oil prices, BREXIT and so on.


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