Investor sentiment toward crypto assets had been lukewarm earlier this year after a string of high-profile collapses in 2022 led to outflows of more than a trillion dollars from the space. However, the recent rally has sent Bitcoin and other cryptos up more than 100% so far in 2023. It means our roadmap is according to the plan.
There is no free lunch in this world. There are both benefits and risks associated with cryptocurrencies. It’s crucial to educate yourself or speak to the “right” people before deciding to invest or not. Speculating on short-term price moves is always a difficult task.
Damn it! Extreme volatility tends to shake out people who are too greedy. We should not miss the forest by focusing too much on the trees. There are better ways to look for upside in a broader Bitcoin bull run. Hey Blackrock, what do you think? This article from Bloomberg is a good read.
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A new survey on the investing mindset of the French people shows that nearly one in four own some kind of investment, and half of those who do first dipped their toes during the pandemic. It turns out that the cryptocurrency craze injected some YOLO energy here as well: More French people own crypto (9%) than stocks (7%) or ETFs (2%).
A deeper dive into the post-Covid newcomers reveals they’re mostly men, far more into crypto and NFTs than traditional investors, and get their advice more from social media or friends than professionals. A significant majority are into gambling and sports betting, which have become increasingly digital and widespread in recent years.
They’re also kind of cocky, with the markets regulator AMF saying more than two-thirds felt they knew their way around. However, these “experts” were more likely to give incorrect answers,” the regulator noted. When asked about simple concepts such as the effects of inflation, diversification or the risk/reward relation, more than half of the youngest respondents answered only two out of six questions correctly. Not very reassuring considering that 40% of the 18-24-year-old bracket said the priority was to make “a lot of money quickly.”
With financial influencers still liable to give dud information to punters on social networks like TikTok, and generational attitudes to gambling clearly changing – sports betting is regularly glamorized on TV — regulators everywhere need a new strategy to improve financial literacy. Given France’s YOLO crowd, Paris is as good a place to start as any.