Market Overview

'Highly Speculative': Regulators Worldwide Sound Alarm On Bitcoin

Share:
'Highly Speculative': Regulators Worldwide Sound Alarm On Bitcoin
Related
Politician Accounts Hacked By Fake Elon Musk Bitcoin Scam
This Week In Cryptocurrency: Bitcoin Cash Soars, Square's Bitcoin Trading Revenue
Cryptoassets Explained: Pundi X (Seeking Alpha)

It seems everyone on Wall Street has an opinion about bitcoin and related investments such as the Bitcoin Investment Trust (OTC: GBTC). In December, that conversation has shifted from investors and money managers to regulators and lawmakers, who are now weighing in the cryptocurrency.

Here’s a look at some of what they've had to say. 

Joseph Borg, president of the North American Securities Administrators Association: “This is not something a guy who's making $100,000 a year, who's got a mortgage and two kids in college ought to be invested in,” Borg said on CNBC. “You're on this mania curve.”

Andrew Bailey, chief executive of the Financial Conduct Authority: “If you want to invest in bitcoin, be prepared to lose all your money,” Bailey told the BBC. “We know relatively little about what informs the price of bitcoin.”

Janet Yellen, chair of the U.S. Federal Reserve: “It is not a stable source of value, and it doesn't constitute legal tender,” Yellen said at a press conference. She added that bitcoin is a “highly speculative asset.”

Securities and Exchange Commission Chairman Jay Clayton: "A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that ... there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation," Clayton said in a statement. “If an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost.”

William Galvin, Massachusetts Secretary of the Commonwealth: “Bitcoin is just the latest in a history of speculative bubbles that most often burst, leaving the average investors with a worthless product,” Galvin said in a statement. “Going back to the 1600s with tulip mania to the present bitcoin craze, chasing the next best thing will, more often than not, end in disaster for the average investor.”

Related Links:

A Guide To Who Loves And Hates Cryptocurrency

Does Bitcoin Actually Hold Any Value At All?

Outgoing Federal Reserve Chair Janet Yellen. Photo by Dustin Blitchok. 

Latest Ratings for GBTC

DateFirmActionFromTo
Feb 2018BuckinghamInitiates Coverage OnSell
Jul 2015WedbushInitiates Coverage onOutperform

View More Analyst Ratings for GBTC
View the Latest Analyst Ratings

Posted-In: BitcoinAnalyst Color Cryptocurrency Specialty ETFs Top Stories Federal Reserve Analyst Ratings ETFs Best of Benzinga

 

Related Articles (GBTC)

View Comments and Join the Discussion!

3 Factors That Can Help Determine If A Stock Will Outperform Or Underperform

Canaccord Genuity: Foot Locker's Fortunes Are Turning Toward The Upside