Matt Damon touts Bitcoin, claiming “Fortune Favors the Brave”. Watch the slicky produced video below. And Mat Damon is not the only celebrity who’s pushed cryptocurrency. For example, there’s Elon Musk. Read his more balanced quote further on.
At Successful Portfolios, we advise ignoring paid celebrity endorsements. Serious investing is hard. Over-the-top hype and exaggeration are not your friends. Bitcoin and cryptocurrencies are risky. Investors can and do lose money.
“I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.” – Tesla CEO Elon Musk as reported by CNBC
Now consider these excerpts from SEC Chairman Gary Gensler’s Speech on Bitcoin and Crypto
…this asset class is rife with fraud, scams, and abuse in certain applications. There’s a great deal of hype and spin about crypto assets and crypto projects. In many cases, investors aren’t able to get rigorous, balanced, and complete information on tokens or trading and lending platforms.
…right now, we just don’t have enough investor protection in crypto. The American public is buying, selling, and lending crypto on trading, lending, and decentralized finance (DeFi) platforms, where there are significant gaps in investor protection.
This leaves markets open to manipulation. This leaves investors vulnerable.