Investing in crypto has become a last resort move to get rich for most people despite the prices of every major coin crashing at the time of writing.
Crypto Has Fallen, but Many Still Believe in It
Max Moulder, for example, has made his living over the past few years cutting and selling gemstones. He is also an Uber driver. Despite the prospects of both career maneuvers, it looks like Moulder isn’t making enough to get by, and he’s now thinking seriously about investing in crypto as a means of adding more to his portfolio and giving himself a fighting chance.
In a recent interview, he commented:
I’ve done gemstone cutting and trading for a long, long time since I was ten years old. That’s not paid off for me. It’s very difficult doing Uber driving with the cost of petrol. That’s not working, and I can’t do cabinet making anymore. So, I’m running out of options really… I feel like I’ve been forced into this.
Sadly, Moulder says he began investing about three weeks before the market took its present nasty turn. He says, however, that he’s confident in the market and he believes things can only go up from here. He commented:
I feel I’ve only got six years to make some large gains, so, I’m jumping in.
In regions like Australia, crypto has become increasingly popular amongst retail investors, with roughly one in nine customers invested in some level of digital currency. However, there are still many scams and problems that these traders are having to deal with. Patrick Veyret – senior policy adviser for consumer group CHOICE – mentioned in a statement:
People have really been harmed, and the system is really rigged against consumers. What we’re seeing is widespread market manipulation, market rigging… a real rise in scams, and that’s why we’re calling for stronger consumer protections and strong obligations on cryptocurrency exchanges.
In addition, stable coins don’t quite present the alternatives that everyone had initially hoped for. The recent crashes of Terra and Luna suggest that anything is possible with stable currencies, including their de-pegging from fiat assets. Henri Arslanian – a former PwC crypto leader and partner – said:
What’s important to understand is that there are different kinds of stable coins. For many, the riskiest stable coins are the algorithmic ones. Unfortunately, they are giving the stable coin industry a bad name. Nothing malfunctioned with Luna or Terra, but the design didn’t provide a solution in this black swan scenario that eventuated.
He continued with:
It’s like saying you have built a building, but it’s not built to withstand an earthquake. That means, if there was an earthquake, the building would collapse. This is what happened with Terra. The building (infrastructure) behind it did not have the right safeguards.