Australia’s Financial Services Minister Jane Hume warned that the cryptocurrencies are volatile and high-risk assets, investors must be aware of risk after the recent massive price correction of the global crypto industry.
According to a report by the Daily Mail, Hume said that Australia “takes no issue with consumers investing in cryptocurrencies.”
The crypto industry has continued on its journey toward mainstream adoption. Crypto investment and trading have become commonplace in most countries today as people seek alternatives to the traditional markets and the low-interest rates plaguing the bond market.
Minister Hume reminded investors to be aware of the volatility in the market following the recent impact of Elon Musk’s energy consumption criticisms of Bitcoin (BTC).
‘They are volatile and high-risk assets, and investors must be aware of these risks,’ Senator Hume told the Stockbrokers and Financial Advisers Association Conference in Sydney.
A reassuring stance is to reiterate the fact that digital currencies are not a scam. In her own words:
“Cryptocurrency is not a fad. It is an asset class that will grow in importance.”
Some lawmakers and government officials around the world are beginning to loosen their stances on the crypto industry. This development is inevitable because the embrace of the nascent asset class has been getting amongst retail and institutional investors. The technology is disruptive, grants financial equality to everyone, and removes the drudgery involved in dealing with delays and excessive fees charged by banks.
Cryptocurrencies provide additional benefits to holders as the value of crypto grow faster than most traditional investment options. The upside is negated at times by its extreme volatilities, a price plunge that can significantly wipe off a huge chunk of the asset’s price in a short time. This happened with the Elon Musk saga and further compounded by the Chinese ban on crypto early before.
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