Over the past few months, warnings regarding cryptocurrency have travelled far and wide. Joe Kennedy said that when everyone wants to buy stocks, that is when you sell. Maybe, the same can be applied to cryptocurrency.
Cryptocurrency prices have soared this year:
• Bitcoin started the year with $969 and ended September with a value of over $5000.
• Ethereum started out with a value of $8 and ended with a value of $400
New coins are released on a weekly basis, usually following tech start up’s.
The Chinese government recently defended their decision to outlaw token sales. They fear that it is a pyramid scheme and that it is a front for criminal activities in disguise as a new technological and scientific innovation.
As with all things cryptocurrency, it is never that simple. Japan has recently decided to accept Bitcoin as a form of payment. India and Sweden are considering inventing their own cryptocurrency. Even celebrities have jumped on board. Actor, Jamie Foxx, socialite, Paris Hilton and boxer, Floyd Mayweather are promoting coin sales on social media.
Even banks are becoming conflicted, as they are receiving pressure from investors.
“We’re in a cycle where prices have been driven up and now crypto hedge funds are driving them up higher. It’s a game, and it looks very much like a bubble. Of course, there’s no way of knowing when a bubble is going to pop, but that’s what it looks like.” Said Angela Walch, associate professor at St Mary’s University School of law.
Angela Walch said that she does not think that people jumping onboard with cryptocurrency, truly understand it.
Walch worries that people are throwing money at something they do not fully understand. This has proven to be a big problem in the past. Walch thinks that most people are just following along because cryptocurrency is new and everyone is doing it.
It is not easy to go against the tide when something is growing exponentially. Pressure from all sides could even force your hand, but it may be wise to remember what the patriarch of the Kennedy family, Joe Kennedy, once said, when everybody is buying, selling may be a wise decision.