SOURCE: Click here to read the full original post

The European Supervisory Authorities (ESAs) have issued a press release alerting consumers to the risks associated with buying cryptocurrency. The release follows previous statements issued that warned investors of the risks associated with participating in ICOs and trading digital assets. 

Lack of Regulation and a ‘Pricing Bubble’

Just yesterday, the ESAs issued a statement to consumers, warning them of the risks associated with cryptocurrency due to their non-regulated status. Their main concern for investors deals with the potential for a cryptocurrency exchange to be hacked or shut down, and the inability for the government to cover the associated losses.

For example, if a VC exchange goes out of business or consumers have their money stolen because their VC account is subject to a cyber-attack; there is no EU law that would cover their losses.

Another concern posited by the release is the ‘clear sign’ of cryptocurrency being in a pricing bubble. The release was most likely influenced by the recent price correction initiated in mid-December during the media frenzy and on-ramping of plenty of retail investors. After hitting a low of slightly under $6,500, Bitcoin has since recovered to the mid $8000s range and is still up over 700% in relation to its price at this exact time last year.

Unsuitability for Long-Term Investment?

One of the main featured arguments in the release against buying cryptocurrencies deals with their “unsuitability” when it comes to both short-term and long-term investment.

The high volatility of VCs, the uncertainty about their future and the unreliability of the VC exchange platforms and wallet providers makes VCs unsuitable for most consumers, including those with a short-term investment horizon, and especially those pursuing long-term goals like saving for retirement.

However, investing in most high-performing cryptocurrency assets, including Bitcoin, Ethereum, and Litecoin, has proven to be quite lucrative in both the short-term and long-term, with massive increases across the board over the years.

Also mentioned is the “unreliability” of cryptocurrency exchange platforms and wallets. Though true in some instances, considering

SourceBitcoinist.net - click here to read the rest of this article