Bitcoin has again started dominating the headlines, a flood of new money has recently entered the cryptocurrency markets- including from emerging the crypto markets such as Hong Kong. Local media is reporting, anyhow, that most of the new investors might not be fully prepared to bear the risks associated with the cryptocurrencies.
Bob Laberge, a Canadian living in Hong Kong, Recently Invested in Bitcoin for the First Time
Mr. Laberge described that he first invested on November 15th, through purchasing $500 USD worth of bitcoin when the price was at approximately $6,600. He wasn’t knowing anything regarding the cryptocurrency while investing. Afterwards, he also invested “tens of thousands more” into the bitcoin, anyhow, he was in a high state of worry since his chosen bitcoin exchange failed to credit his account for four days.
Mr. Laberge described:
“The way I dealt with the banks was exactly the mindset when I was getting into bitcoin. For most exchanges, it’s very difficult to get in touch with them. The only way to contact people, unlike a bank where you call their number and someone answers in a couple of minutes, is through a support ticket. And if they don’t answer the support ticket you are left hanging and it’s stressful when you’ve got a huge amount of money sitting there.”
Mr. Laberge claimed that he will not invest anything in bitcoin from now since his investment is increasing in value by 70%.
“My wife saw that it was going up and she said we should invest more but I said ‘No, let’s not lose our heads.”
The President at Bitcoin Hong Kong spoke about the rush
Mr. Weese Stated:
“There is certainly a big influx of new [bitcoin] users; the price increases give people an incentive to get in as fast as they can, the problem is that people are not making good decisions and they’re not thinking about exactly what it is that they’re investing in and what the risks are.”
Mr. Weese told that he wants to see the drop of several “poorly run” Asian cryptocurrency exchanges in the future. warning that many investors are purposely going to bear the risk.
“People confuse bitcoin always being around with bitcoin exchanges always being around, but that’s not the case.”
Rapid Growth creates challenges for regulators
Charles Mok, a representative of the IT sector to Hong Kong’s legislative council, has described the growing cryptocurrency sector as posing a number of challenges to regulators.
“It puts us in a very uncomfortable situation,” Mr. Mok stated. “On the one hand we want to see an industry developing around cryptocurrency. But on the other hand, I don’t think these kinds of speculative activities … are really conducive to the long-term development of crypto-technology and cryptocurrencies.”