Crypto NewsBitcoinStatements on the Future of Cryptocurrencies from Former SEC Lawyer!

Statements on the Future of Cryptocurrencies from Former SEC Lawyer!

Former SEC attorney John Reed Stark shared his views on cryptocurrencies with his followers on Twitter.

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Former SEC attorney John Reed Stark shared his thoughts on cryptocurrencies, stating a number of issues he sees with cryptocurrencies.

Stark, who worked in the SEC Enforcement Division for 18 years, shared his objective and independent views on why he believes cryptocurrencies are failing on Twitter.

Former SEC Attorney Stark Evaluates the Future of Cryptocurrencies

Stark argues that cryptocurrencies fail as an investment due to a lack of regulatory oversight, transparency, consumer protections, insurance, licensing and net capital requirements. He argues that the crypto market is riddled with market manipulation, insider trading, and fraud, leaving investors no chance of success from the start.

Furthermore, Stark argues that cryptocurrencies fail as a currency due to high fees, heavy taxes and endless risks, making it impossible for anyone to accept crypto assets as payment as their value can drop drastically the next day.

Stark also believes that cryptocurrencies fail as a store of value because they lack utility and intrinsic utility.

Finally, Stark states that cryptocurrency has failed as a safe haven because it lacks government oversight or protection to provide any kind of safe appearance.

Stark argues that the price of cryptocurrencies is based solely on speculation and that buyers hope they can sell their crypto assets to someone else for a higher price in the future. Known as the "big fool theory," this phenomenon suggests that buyers buy an asset not because they believe in its value, but because they believe someone else will pay more for that asset later on.

According to Stark, crypto proponents lure users with false logic, convincing them that buying crypto is a better option than trusting banks.

However, in the rare event a bank goes bankrupt, there are legal barriers such as insurance and federal ownership/takeover to protect/assist depositors. Stark states that when a crypto platform fails, customers have no protection from the US government and their access to assets can be suddenly locked or frozen.

*Not investment advice.

Buradaki Yorumlardan Bildirim Al

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