British analysts note that digital currencies are speculative investments with high risk and can be a market bubble.
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January 12, 2021
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Invest in a property as volatile as cryptocurrency The market is always a risk. The UK Financial Conduct Authority (FCA) holds Electronic currency warns investors that they There is a danger of losing all your money. According to analysts, investment risks are mixed By scam activity .
Crypto coins have been getting dizzy for the last few days. Tomorrow, January 12, Bitcoin Falling down appreciated by about 20% $ 30,000, After marking a record high of over $ 40,000 Per unit.
– Bitcoin (@ bitcoin) 8 January 2021
In this framework, British experts point out that cryptocurrency related investment and loan products carry “Very high risk” .
“If consumers invest in these types of products, they should be prepared to lose all their money” Warned off FCA.
The body noted that cryptocurrencies are “High Risk Speculative Investments” And those who buy them must understand “What they are investing, the risks associated with the investment and any applicable regulatory protections “
Financial analyst, for his part Lath jalaf Agreed that the sudden rise of bitcoin could be a market bubble.
“The regulator is clearly concerned that the high risks already present in crypto assets are being complicated by scam activity, as well as unregulated companies targeting consumers with marketing collateral that exposes rewards, but potential No. Loss of investment in crypto assets ” , Explained Jalaf In statements collected by the CNBC channel.
Bitcoin vs Gold
On the other hand are those that predict a promising future for cryptocurrency. Analysts say J. P. Mourgan Said that Bitcoin Can rise to $ 146,000 And compete with gold as an “alternative” currency. However, they say that this will only happen if the cryptocurrency’s market capitalization rises 2.7 times to match private sector investment in gold of $ 2.7 trillion.
In early 2020, the average price of bitcoin was $ 7,300 And closed the year Over $ 29,000. This means an estimated growth of 300% in the last 12 months. In early December alone, cryptocurrency was almost worth it $ 19,000, Representing 53% increase in one month Then, on January 7 it hit its all-time high 40,000, to leave 30,000 After just a few days. For now, it remains fairly stable, between 32 thousand and 36 thousand dollars per unit.