New Philippines Central Bank Governor: Crypto Investors Are Adherents of the Greater Fool Theory

The incoming politician of the Philippine cardinal bank, Felipe Medalla, has suggested that radical that put successful cryptocurrencies similar bitcoin are adherents of the Greater Fool Theory. He besides argued that radical investing successful cryptocurrencies are doing truthful due to the fact that they privation to “hide their wealth from the government.”

A ‘Very Scary’ Investment Strategy

The caller politician of Bangko Sentral ng Pilipinas (BSP), Felipe Medalla, has claimed that bitcoin investors lone bargain the cryptocurrency due to the fact that they are convinced that idiosyncratic other volition bargain the aforesaid integer plus astatine a higher price. According to Medalla, who spoke astatine a virtual roundtable treatment that was organized by a section media outlet, specified an concern strategy is “very scary.”

Also, arsenic reported successful Business World, Medalla believes the worth proposition of cryptocurrencies is based connected the alleged Greater Fool Theory. According to Investopedia, the mentation asserts that prices spell up due to the fact that investors tin merchantability overpriced securities to different investors oregon the “greater fools.” Investors subscribing to this mentation are known to disregard valuations, net reports, and each the different data.

Using Crypto to Hide Funds

In summation to the Greater Fool Theory claims, which were besides recently raised by Bill Gates, the incoming BSP politician said radical that take to put successful cryptocurrency bash truthful due to the fact that the integer currency gives them an quality to fell their holdings. He explained:

This is simply a caller instrumentality that adds to the quality to bash that. There are plentifulness of radical who privation to fell their wealth from the government.

While the BSP does not straight modulate cryptocurrencies, it has issued guidelines that necessitate virtual plus work providers (VASPs) to unafraid a licence from it. Medalla, meanwhile, is quoted successful the aforesaid study expressing his support of the exertion of cognize your lawsuit (KYC) and anti-money laundering policies connected VASPs.

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