Fed Governor says, "Don't expect taxpayers to bear your losses."

Iravan774

Warning: "Cryptocurrencies could go to zero at any time!" Fed Governor says, "Don't expect taxpayers to bear your losses."

Federal Reserve (Fed) Governor Christopher Waller stated that cryptocurrencies are speculative assets, and their prices could go to zero at any time. He warned investors not to be surprised when such situations occur and emphasized that taxpayers should not be expected to bear their losses. Waller also believes that financial institutions entering the cryptocurrency space should guard against bad actors and risks to the financial system.

Speaking at a conference hosted by the Global Interdependence Center, Christopher Waller issued a stern warning to cryptocurrency investors. He emphasized the risks associated with cryptocurrencies as assets without intrinsic value, comparing them to speculative assets like baseball cards. Waller stated:

"To me, cryptocurrencies are simply a speculative asset, much like baseball cards. If people believe that others will buy it at a positive price in the future, it will trade at a positive price today; otherwise, its price will go to zero."

Christopher Waller added, "If people want to hold such assets, go ahead and buy them. But if you buy cryptocurrencies, and their price becomes zero at some point, don't be surprised, and don't expect taxpayers to bear your losses."

He also pointed out that several well-known cryptocurrency-related companies have applied for bankruptcy, including payment platforms, exchanges, lending platforms, and hedge funds. Waller emphasized that both retail and institutional investors have felt the impact of the cryptocurrency winter.

977Iti

Losses are unavoidable.

Kahn332

Someone will have to bear these losses for sure.

Isha000

When talking about cryptocurrencies going to zero, it likely refers to specific individual cryptocurrencies.

Jafar224

Taxpayers are also facing significant losses.