“Be careful with Crypto: Devaluation, 104% Inflation, and Texas’ “Proof of Reserve” Law”

by | May 3, 2023 | Inflation Hedge | 17 comments




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Cryptocurrencies have become increasingly popular over the years, with Bitcoin and other cryptocurrencies gaining wider acceptance and usage worldwide. However, it is important for investors to exercise caution when investing in cryptocurrencies due to the high potential for devaluation and inflation.

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Recently, Bitcoin and other cryptocurrencies have seen massive surges in their values, leading many investors to flock towards them. However, this surge in demand has also led to a steep increase in inflation rates, with some cryptocurrencies experiencing inflation rates as high as 104%.

This high rate of inflation can be attributed to the limited supply of many cryptocurrencies. As demand for these currencies increases, so too does the price, drawing in more investors and increasing inflation rates.

Investors should also be wary of the volatility of cryptocurrencies, which have proven to be highly unpredictable in their pricing. With few regulatory laws governing cryptocurrencies, prices can fluctuate significantly within a short period, rendering investments vulnerable to severe losses.

Furthermore, investors should be cautious when selecting exchanges to trade their cryptocurrencies on. There have been numerous cases of exchanges being hacked or running fraudulent activities, leading to the loss of investors’ funds. It is essential to research and choose reputable exchanges with adequate security measures.

Fortunately, some state laws can protect investors when transacting cryptocurrencies. In Texas, for example, there is a “Proof of Reserve” law that requires cryptocurrency exchanges to prove they hold enough reserves to cover their clients’ assets. This law aims to alleviate investors’ concerns about holding their assets on an unsecured platform.

In conclusion, investing in cryptocurrencies can be lucrative, but investors should exercise caution and do their research diligently. They should avoid investing more than they can afford to lose, select secure exchanges, and be aware of the high inflation rates and volatility associated with cryptocurrencies. Most importantly, investors should be aware of the state laws governing cryptocurrencies and ensure they transact on platforms that comply with them to protect their assets.

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17 Comments

  1. markus willliams

    I pick up all the change I find on the floor

  2. Γιάννης Βακουφτσής

    The everyday common LIE of our days is blaming crypto for the inflation (and NOT printing new currency) and blaming crypto for bank failures (and NOT Banking policies, investments and interests)

  3. Victor Fontaine

    The pencil pushers in Washington have been screwing up the trucking industry like that for over a decade. They implement more ridiculous regulations that companies have spend more to come into compliance. As a result the companies cut back on the number of drivers and their salaries… Transportation companies use to pay for certain things and offer bonuses to new drivers. Now most of those costs have been put on the driver, along with their lower salaries and purchasing power… The whole thing is collapsing. There’s no stopping it now.

  4. Larry O.

    Some countries have eliminated the penny. US banks nolonger have reserve requirements.

  5. joe foreman

    Ok in 2022 my wife’s catering service did a fund raiser dinner for McHenry’s democratic opponent in Hendersonville. I, and his campaign chair who set up the gig with us and the accountant handed me the check and I told them the same 2 sentences I told McHenry: “I’m voting Bitcoin I don’t care which of you is more aggressive and I can get you 30 votes of never voters and republicans.”
    I hung around and told the dem (who lost the race later) and a few of his rich supporters the same thing adding, “I’m the caterer, this is a big deal for little nonaligned people.”

  6. joe foreman

    Right after Covid I was having breakfast in Black Mountain with an attorney I grew up with who had worked with McHenry and McHenry walked in and asked to talk with Him they stepped away from the table I found out who McHenry was so I walked over and said, “I’m a nobody who didn’t care about politics or who you were until Bitcoin. You support crypto I’m voting for you, steve here will let me know and I can pick up about 30 never voted and democratic voters for you” I went back and sat down.

  7. Rick

    Cryptoviser, the U.S. does not have to ban Crypto, to stop U.S. citizens from trading or investing in it. The SEC is following a playbook. They can't make laws, but they can stall.
    Because, they do not offer clarity, the exchanges are moving off shore. That is putting us in CHECK!
    IF the U.S. approves the RESTRICT Act, we will be in CHECKMATE. VPN use will be a crime. If we can not use VPN's to access offshore exchanges we are then cut off from crypto.
    Anyone's thoughts?

  8. Chowdog Chowdog

    no point investing in crypto if coinbase is exiting

  9. Matthew Aas

    Oh it happened Cryptoviser! Price manipulation that is of those so called 4 "assets" lol.

  10. OG Lee

    Many tech companies report earnings this week. If they disappoint and the NASDAQ suffers, does Bitcoin and the other cryptocurrencies mirror the NASDAQ as they have thus far? Could this week of possible weak earnings be the catalyst for Bitcoin and cryptocurrencies to take a sizable dip?

  11. Alex S

    Our coins are literally not worth the metal they are minted with

  12. Robert M

    Buy PEPE COIN!

  13. Yacht Works

    CryptoViser , When we reach the peak in May or June (if you are correct), will you be selling and then reinvest when the market goes back down ? Or, just HODL for the bull run ? Thanks for the vids !

  14. gopi bharathi

    Buy this dip…don't sell your asset

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