Warning! Beware of cryptocurrencies!

Investments in cryptocurrencies are recording unprecedented returns. In this period you buy and earn, even in a single day, even in a few hours.

What in this period is increasing excessively, is not the value of cryptocurrencies in itself, as the ratio cryptocurrency / Euro - or - cryptocurrency / USD.

It is therefore only increasing the availability of the market (the investor) to pay more and more in exchange for a bitcoin.

As I have been able to deepen in the various courses and presentations, blockchain-based projects are nothing more than distributed public database of transactions. Your bitcoin, litecoin or ether is therefore a simple unit of account. In Bologna, during the demonstration of how to download the blockchain to become a full node of the Bitcoin network, to the question of a student asking "in the end the" money "where are they?", I had to answer that in the blockchain "money" there are none ", triggering a loud laugh in the room.

In contrast to an investment in shares, the purchase of cryptocurrency does not have any shed, machinery, product, customer or service as underlying. The BTC / EUR exchange reflects exclusively the confidence of the economic system towards this new economic paradigm, based on the possibility, given to individuals, to exchange virtual money, without banks.

Those investing in cryptocurrencies must be well aware of this. This is high-risk financial speculation, absolutely not suitable for anyone.

Invest only money that you can afford to lose totally. Any loss of the totality of your investment in cryptocurrencies should not change your present or future lifestyle. For no reason should you borrow to invest in cryptocurrencies.

Although it seems that the price of any cryptocurrency can only go up, nothing prevents the relative valuation in Euro from erasing in an instant.

Also evaluate counterparty risk. Where and to whom have you sent your "old" Euro? Are you sure you really own your bitcoins, Litecoin or Ether? If tomorrow morning, instead of your trusted site, you find the writing - service unavailable - you know how to recover your digital assets? Or would you panic without even knowing who to turn to?

In this regard, who regulates and controls your cryptocurrency "broker"?

But if your investment in the criptoasset becomes considerable, seek the advice of an expert and contact a professional financial advisor.


1 - Comment

Jacopo Emoroso

Jacopo Emoroso - 18/07/2018 16:19 Reply