Cryptocurrency investing is like going to a ritzy casino — the sights and sounds of winning don’t mean the vast majority of people are richer than when they started playing. It’s all part of the lure and illusion. It’s why slot machines are built to flash and ring when someone hits a jackpot. The casino owners want other gamblers to keep betting in the hopes that they, too, can walk away with a big payout. The phenomenon, known as the “greater fool theory,” is exactly what early investors and champions of cryptocurrency want. Or, as Investopedia explains it: “The greater fool theory argues that prices go up because people are able to sell overpriced securities to a ‘greater fool.’ But it turns out many Americans are hip to the hypocrisy and hype surrounding cryptocurrency. That is, of course, until there are no greater fools left.” Of those who have heard of cryptocurrency, 75 percent say they are not confident that current ways to invest in, trade or use cryptocurrencies are reliable and safe, according to a survey by the Pew Research Center, based on a poll of 10,701 U.S. adults in mid-March. Right on the money, America. Recent revelations about corporate mismanagement, fraud and bankruptcies in the cryptocurrency industry have investors rightly concerned. According to Pew, 17 percent of U.S. adults say they have invested in, traded or used a cryptocurrency.
Full analysis : Americans view crypto investing as unreliable. They’re right.
