Senator Warren Says, Cryptos Are ‘Speculative In Nature And Going To End Badly’

Senator Warren Says, Cryptos Are ‘Speculative In Nature And Going To End Badly’

Crypto critic senator Elizabeth Warren doesn’t see cryptocurrency investment ending up good for anyone.

“Speculative in nature and going to end badly,” is what she had to say about the digital currencies in an interview with CNBC. Back in 2018, she said, “The challenge is how to nurture productive aspects of crypto with protecting consumers.”

On Tuesday, Warren was asked if she agrees with US Treasury Secretary Janet Yellen’s sentiments about cryptocurrencies. Warren said Yellen is a “very smart woman,” and she didn’t leave much room for ambiguity regarding her views on cryptos.

Yellen called Bitcoin “highly speculative” last month because of cryptocurrencies usage in terrorist financing and illegal business. She also called the leading digital currency “extremely” energy inefficient.

Cathie Wood, founder, and CEO of hedge fund ARK Invest addressed Yellen’s remarks, saying the Treasury Secretary doesn’t understand cryptocurrencies. She said,

“I’m not quite sure why she’s saying this. All I know is that she doesn’t understand the crypto space, and I say this with all due respect; I just don’t think it is what she does. She’s responding to a movement in price, that I understand, which has been very rapid.”

Wood further argued that the energy usage of Bitcoin, which is mostly renewable, is a fraction of that used to mine gold, and it “hardly measures up” to the energy consumption of the traditional financial world.

Warren, meanwhile, as one of her first moves as a new member of the Senate Finance Committee, unveiled legislation this week that would introduce the Ultra-Millionaire Tax Act. As per this proposal, a 2% annual tax on households and trust over $50 million will be introduced. An additional 1% annual surtax could be added to those whose wealth exceeds $1 billion. She said in the interview,

“I think most people would rather be rich and pay 2 cents. This is not very fancy. It really is a tax on fortunes above $50 million.”

According to her, wealth tax was needed for a long time in order to produce more opportunity in America. In a statement, she pointed out how the wealth of the billionaire class increased by more than a trillion dollars over the last year, during the pandemic. Warren said,

“We do understand the direction we’ve been going. This pandemic has created more billionaires. The people at the top are not barely hanging on by their fingernails.”

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Author: AnTy

Despite a Love or Hate Relationship, New Futures Investments Are Making Cryptos More Popular

Futures markets can help economies to grow a lot, but some people see them as very speculative. The situation would not be different in the case of crypto futures, which are even more speculative to some experts but are helping the market to grow.

Bloomberg has recently published an article affirming that Bitcoin futures show how the market has matured. According to the post, futures went from almost being meaningless to around 50% of all the spot trading activity in the market in just a couple of years.

What consequences has this brought to the market? The investor base has grown in numbers and the volatility has been decreased during this timeframe.

Crypto futures are so popular right now that most crypto exchanges are offering them together with services of lending and borrowing cryptocurrencies. This makes it very easy for crypto holders to make considerable profits just using these financial tools.

The article also notices that the volumes of contracts in traditional exchanges that started their futures during 2017 such as the Chicago Mercantile Exchange (CME) have doubled their volume in 18 months. This shows that, despite being still a small market, the growth has been exponential so far.

While there are still doubts among some investors about if cryptos will represent a revolution in the markets or not, the fact is that they can be pretty profitable right now.

New exchanges such as the Intercontinental Exchange’s Bakkt have just appeared and will probably leave their mark in the industry, too. With all these improvements, it is hard to see a future in which cryptocurrencies will not be popular investments.

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Author: Hank Klinger