To The Moon

Would you still invest in Crypto?

With bitcoin now sitting below $18000, from highs of $60000 earlier this year, crypto investors have really been on a wild ride. Their ride has certainly been made more depressing with companies like FTX and Celsius collapsing. Certainly, 2 years ago, I don't think anyone could have seen this, both rise and fall.

Even state investor Temasek holdings did not, losing to a rumoured tune of $200million. Yet, companies like $Coinbase Global, Inc.(COIN)$ and Binance continue to flourish as investors look towards "safer" exchanges. Perhaps their risk appetite is higher as the returns are fast and furious. Some may even use this opportunity to "buy while there is blood on the streets".

My opinion is that investors have a constant risk function, which consists of exposure Vs hazard. Even though FTX might have collapsed, Coinbase and Binance are viewed as safe havens. Their perspective in terms of investing in these safe havens means less hazards/risk and thus will increase their exposure. As the level of hazard decreases, to them, it's ok to increase their exposure in return for...greater returns.

My take is that it is likely crypto will continue to skyrocket and fall because of the lack of regulations. However, it is this risk that investors may be willing to take for greater ROI. It is also this reason that I urge crypto investors to practice caution until there are greater regulations. I believe crypto and block chain technology will play a great role in fintech but for now, crypto is a great deal too speculative. More government intervention is required so as to ensure our finances are secure. Even state backed institutions recognise the need to trial as there may be unintended consequences. What more about us?

@CaptainTiger  @TigerStars  @MillionaireTiger