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FCA skeptic about cryptocurrencies? Here’s what experts say

TL;DR

TL:DR Breakdown

  • As Bitcoin went from the record $42,000 to a low of $35,000, its volatility is a matter of discussion amongst the expert.
  • Although values are soaring, skepticism is still quite high with the Financial Conduct Authority (FCA).

Bitcoin’s collapse in 2018 left people negative about the cryptocurrency, since the volatility makes it a perfect instrument for those seeking short term profits, but it proves unstable for long term investors, according to the market watchdogs such as the FCA, the key regulator for well over 58,000 financial services. 

Bitcoin’s value fluctuations are sources of concern

Since 2020, it is safe to say that the currency soared over 300%, causing what can only be defined as a cryptomania. With an increasing amount of investors including cryptocurrency in 2020. American businessman Robert Kiyosaki, author of business best sellers such as “Rich Dad Poor Dad” and “Quadrant Cashflow” even went as far as predicting bitcoin will hit $75k, The coin’s value fluctuations still prove to be sources of concern for long term investors despite the long list of records of consistently hitting all time highs.

FCA regulations tightened grips around crypto and trading

With investors craving to cash in on the ever increasing popularity of the currency, Britain Financial Conduct (FCA) authority still opened with this statement:

“Significant price volatility in crypto assets, combined with the inherent difficulties of valuing crypto assets reliably, places consumers at high risk of losses.”

FCA regulations have also tighten their grips around crypto and trading, introducing new laws which force all UK trading firms to register with it in another attempt to fight money laundering schemes across the country and internationally. 

Despite the common knowledge of cryptocurrencies’ fluctuating nature, the market and its investors remain bullish on the subject. 5% of all American adults have said to have invested in bitcoin, according to Vocal Media. 2% have invested in Ethereum as well.

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Alessandro Grossi

Alex is a crypto enthusiast which started getting into this fantastic world of digital currencies with minuscule trades in 2019. After some fortune and misfortune, he decided to mix the two things he enjoyed: Trading and writing. Not much later, he became a full time writer for Cryptopolitan, which he proudly represented ever since.

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