The collapse of the FTX crypto exchange, Alameda Research , and numerous related entities have many pounding the table for government regulation, insisting the US government lead the way.Before demanding that the US government take on responsibility for safeguarding private forms of money, perhaps we should consider its mismanagement of taxpayer money.
FTX has rapidly accelerated the timetable for discovering whether or not crypto exchanges, crypto trading firms, crypto hedge funds, so-called "stable" coins, and the like are Global SIFIs. Big guys only seem to fear regulators after getting caught screwing people out of billions. Punishments seem to be determined by weighing public outcry and the egregiousness of someone's behavior in relation to the size and recipient of their political contributions.That's when regulatory agencies become controlled or unduly influenced by key players within the very industry they're tasked to monitor.
I hate to be the bearer of bad news, but… in the eyes of the government, you, dear reader, are an acceptable casualty if your suffering preserves the status quo.If you still wish to invest in crypto, here's a"regulation" you can self-impose that will better protect you than any government regulation:Hold your crypto in cold storage—or accept your fate as an unsecured creditor should your exchange become insolvent.
Crypto investors would benefit from pondering where else they can generate crypto-like returns without encountering the numerous"uncertainties" of the crypto markets. It generally takes years to develop a profitable mine. You don't need to be a PhD geologist to read the bottom line in a mining report. You don't need an MBA from Harvard to determine if a miner is succeeding or failing.
Well-funded mining companies can drop low six-figure sums to become the headline sponsor of a mining conference. Crypto companies spend tens of millions for the naming rights of NBA arenas.The easiest way to avoid drinking the Kool-Aid is to put down the cup… or never pick it up in the first place. The numbers show that you can achieve outsized returns by investing in the right miners. You can make plenty of money without even touching exploration companies—but even when you swing for the bleachers there, you're not competing with the biggest funds on Wall Street.
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Source: CBCNews - 🏆 2. / 99 Read more »