Former US Securities and Stock Exchange Commission President Gary Gensler warned the future of crypto beings other than Bitcoin. In an interview at CNBC, he drew attention to the weakness of the economic foundations of these assets. Gensler, the value of many assets in the market is based only on the interest of the public, he said.
Crypto Risks
Gensler said that crypto assets are usually based on the state of economic basis in trading. This increases the risk of survival of assets. In the statement below, Gary Gensler emphasized the difference between basic and emotional factors:
Gary Gensler: “Financial assets are traded on basic and emotion, but almost all of the assets in this field are based on emotion.”
Bitcoin and traditional value orientation
Gensler said Bitcoin is in a different position than other beings. Bitcoin’s interest by 7 billion people around the world gives him strong support. On the other hand, the fact that the numerous crypto token found on the market has not caught a similar area of interest increases the risk factor.
Gensler, the altcoin market assets, as in precious metals such as gold and silver, such as permanent interest, said that the demand can not arous. In this context, it was reminded that investors should consider economic foundations when evaluating their risks.
Market observers say that such warnings in the crypto asset sector may cause investors to be more careful in the selection of assets. The possibility of fluctuating and sudden decreases in the market makes risk management important.
Gensler also made the following assessment:
Gary Gensler: “There are only a few valuable species in metals. People will not be interested in dozens of crypto tokena in the long run.”
In summary, the limited assets with a strong economic basis similar to Bitcoin in the market increases the risk factor of other digital assets. Investors can act by taking into account the dynamics of the market and the existing foundations, and try to minimize their risks.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
