investment portfolio

Study: 77% of Saudis Aware of Cryptocurrencies, Only 18% Currently Buying and Selling

03/03/2022 by Idelto Editor

More than three-quarters of Saudi Arabian residents are aware of cryptocurrencies, a new Yougov survey has found. However, the study also found that only 18% of those surveyed are presently buying and selling cryptocurrencies.

Easy Accessibility of Virtual Coins

According to the findings of a Yougov survey, about 77% of Saudi Arabian residents are aware of cryptocurrencies, which suggests that the asset class “has generated a fair amount of awareness.” The study data, on the other hand, shows that only 18% of those surveyed confirmed they are buying and selling cryptocurrencies.

As shown in the study data, while younger Saudis are currently dominating crypto trading in the kingdom, the findings show that older Saudis also “plan to deal in it.”

Concerning the factors that motivate Saudi residents to invest or trade cryptocurrencies, the study found that almost half of the respondents cite their accessibility. The report states:

Currently, the key motivation for most Kingdom of Saudi Arabia [KSA] residents who either invest or plan to invest in digital currencies is the easy accessibility of virtual coins for trading (49%).

According to the study, 43% of the respondents that already buy and sell crypto assets point to the “high returns” on investments as the other key motivator. The study notes that “this aspect has a higher appeal among 45+ adults as compared to the rest.”

Barriers Stopping Saudis From Investing in Crypto

About 38% of Saudi residents that buy and sell cryptocurrencies also cite the need “to diversify my investment portfolio” as another key motivator. About 13% of those investing in cryptos said they are doing so because friends or family that benefited recommended it.

Meanwhile, the study findings suggest that a significant number of Saudis — 37% of those surveyed — cite the volatility of cryptocurrencies as one of their top reasons for not buying in. Some 36% cite their lack of experience as a reason for not investing in cryptocurrencies and 31% felt “it is not a legal mode of investment.”

Only 15% of those surveyed thought investing in cryptocurrencies was against their religion, while 13% said the assets pose a cybersecurity risk.

What are your thoughts on this study’s findings? Tell us what you think in the comments section below.

South African Regulator Warns Crypto Investors to ‘Be Prepared to Lose All’ Following Collapse of Bitcoin Trading Company MTI

05/02/2021 by Idelto Editor

South African Regulator Warns Crypto Investors to 'Be Prepared to Lose All' -No Legal Recourse for Victims of Scams

The Financial Sector Conduct Authority (FSCA) has issued what it terms crypto health warning after receiving many complaints from South African victims of crypto scams. In the warning, the FSCA reminds prospective investors that crypto-related investments are currently not regulated. Therefore, investors have no recourse against anyone should they get duped.

Cryptocurrencies Are High-Risk Assets

The FSCA’s warning comes a few weeks after an executive with the regulatory body bemoaned the challenges of regulating cryptocurrencies and how scammers are taking advantage of this. The official singled out the now collapsed Mirror Trading International (MTI) as an example of how scammers now use cryptocurrencies to evade regulation.

Meanwhile, in the latest warning, the FSCA reminds South African investors to be on the lookout for crypto companies that “overstate potential pay-outs or understate the risks.” The South African regulator, just like its peers in the U.K. and New Zealand, reiterates the message that crypto investors can potentially lose everything.

The FSCA statement warns:

Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money, which mean that you should be prepared to lose all of your money.

The regulator also adds that “there is no guarantee that crypto assets could be converted back into cash.” This, according to the regulator, puts “consumers at the mercy of supply and demand in the market.”

The Power of the Fear of Missing Out

In the meantime, the FSCA’s warning statement also offers a glimpse of what the regulators perceive to be the drivers of crypto-asset prices.

The regulator says:

The price of crypto assets is dictated by the underlying mood or sentiment of the general public with no underlying basis for value determination. The prices are driven by the worldwide sentiment which is driven by persons who have an interest in the value of the crypto asset being driven up.

The FSCA officials believe Ponzi operators and some crypto influencers are taking advantage of the fear of missing out (FOMO) to convince new and inexperienced investors into buying crypto assets. Therefore, to help investors, the FSCA warning also offers some useful tips for investors that wish to buy crypto assets.

For instance, according to the regulator, cryptocurrencies “should only make up a small proportion of their investment portfolio” regardless of the risk. Investors are also urged to “obtain proper advice regarding the overall suitability of such high-risk product in your investment portfolio and the impact on it should it fail.”

The FSCA concludes its statement by reminding potential buyers of crypto assets that “if an investment looks too good to be true, it usually is.”

Do you agree with the FSCA’s assertions that cryptocurrency prices are driven by the public’s underlying mood? You can share your views in the comments section below.

No, You Can’t Buy Shares in Bitcoin

29/11/2020 by Idelto Editor

With bitcoin going through an extended bull-run, scammers and con artists have been on hand to exploit a general fear of missing out (FOMO). Many early adopters of bitcoin became multi-millionaires by simply holding the digital asset.

New Scam Tactic

Consequently, many bitcoin investment scams have sprung up and millions of dollars have been lost to fraudsters. Although some education and awareness campaigns have helped to expose some of the sinister scam tactics, it appears new and more brazen ones are emerging.

One such new tactic implies that investors can buy or own shares in Bitcoin itself, as if it was a corporation. This tactic is for example part of an elaborate plot used by individuals behind an operation called Bitcoin Inc, to con ignorant investors into mistaking the operation for “the real Bitcoin”.

In a presentation, the shareholders of “Bitcoin Inc” depict bitcoin as the creation of a privately owned company that came into existence around the year 2010. The timing of Bitcoin Inc’s emergence appears to give the impression that the organisation is likely behind the issuance of bitcoin itself.

Using half-truths and outright false claims, the scammers’ webpage says some investors already hold bitcoin shares through Bitcoin Inc’s full corporate shares after buying these in 2010. According to information on the site, there is a “21 million BTC maximum limit and 1000 Bitcoin Inc full corporate shares maximum limit.” One full corporate share is “equivalent” to 10 BTC.

Now in order to entice ignorant investors, the website implies that anyone who bought and has held on to one full corporate share since 2010, now has an investment portfolio valued at $210,000. This is because BTC has since risen from the price of $0.10 when the full corporate shares were supposedly issued in 2010.

Indeed, BTC has been the best performing asset in the past decade but certainly, it was not issued by any single entity as the operators of Bitcoin Inc are insinuating. Rather, the creation and issuance of bitcoins are down to a complex and decentralized technology.

“USDCX” – using names similar to well-known brands, “Bitcoin Inc.” lures investors.

So while Bitcoin Inc correctly states 21 million as the fixed maximum of BTC, the organisation fails to inform potential investors that nearly 18,5 million bitcoins have been issued so far. The very last BTC will only be issued in the year 2140, yet Bitcoin Inc implies throughout its pitch that 21 million coins are already in circulation.

Meanwhile, at the time of writing, BTC is trading at just under $18,000 but is struggling to break past the $19,500 resistance level. Interestingly, the Bitcoin Inc site falsely implies that BTC has a projected price of $21,000, which would be a new all-time high if it were true.

Lies and Half-Truths

Normally this use of false information alone should be enough to turn investors away. Typical bitcoin scammers are aware of the general ignorance levels of non-bitcoiners such that they are not overly worried about the potential downside of using lies. Instead, the scammers know that using the appeal of getting rich quickly is often enough to hoodwink even the most rational investors.

Furthermore, an apparent reluctance to learn the basics about bitcoin (by non-bitcoiners), as well as the failure to follow trends in the crypto markets, usually gifts scammers with new victims. Perhaps the least known tactic employed by scammers is the attempt to cast themselves as a group of benign philanthropists.

Buying USDC Stablecoin

Copying this strategy, Bitcoin Inc is giving an opportunity to investors that “missed out” when its full corporate shares were supposedly sold for the first time: Bitcoin Inc says:

The full corporate shares of Bitcoin Inc. were purchased long ago, with the shareholders enjoying the benefits and dividends that come with owning the shares of a successful corporation. Bitcoin Inc. has secured an agreement with all shareholders through which they are now generously offering fractionally equivalent corporate shares to the public in honour of Bitcoin Inc.’s 10-year anniversary.

Using a very incoherent explanation, Bitcoin Inc assures investors who missed out in 2010 that they can now make amends by “holding any amount of USDCX in your cryptocurrency wallet.”

To do this, the website then goes for the kill. An investor simply has to transfer USDC stablecoins equivalent to the USDCX “fractional shares” they want to buy to an ethereum contract address, but there is a caveat.

The statement explains that “in order to maintain the integrity of the Bitcoin Inc corporate shares,” the request for the USDCX shares will be processed manually. The statement adds:

Once we verify the transaction, the corresponding USDCX will be sent directly to your wallet from the USDCX Ethereum contract address.

Only when the process is complete does one become a “proud owner of USDCX and a co-owner of the official Bitcoin Inc.!” But nothing stops the scammer from doing the same thing again with another Bitcoin-like website and domain, such as “Bitcoin Ltd.” Bitcoin is perfectly suited for scammers in that there is no trademark or corporation behind the Bitcoin brand who can protect it from scammers.

What do you think of Bitcoin Inc’s fictional “fractional share” offer? Share your views in the comments section below.

The post No, You Can’t Buy Shares in Bitcoin appeared first on Bitcoin News.

Mexican Billionaire Ricardo Pliego Invests 10% of Liquid Portfolio in Bitcoin- Says the Crypto Shields Against Wealth Expropriation

19/11/2020 by Idelto Editor

Mexico’s second-richest person Ricardo Salinas Pliego confirms that 10% of his liquid portfolio is invested in bitcoin. The billionaire says the top crypto protects the wealth of private citizens from getting expropriated. Pliego advises his followers that might want to follow his in footsteps to study and understand bitcoin. He also recommends one book, “The Bitcoin Standard,” as one ideal learning tool for learners.

A Case For Bitcoin in a Portfolio

With an estimated net worth of $11.9 billion, Pliego joins the growing list of millionaires, billionaires, and corporations that are now adding bitcoin to their investment portfolios. Meanwhile, in one of his tweets, the billionaire gives his perspective on what bitcoin can bring to an investment portfolio. He says:

To start with bitcoin, I share a video taken in a Latin country where banks throw away money (when the banknotes become worthless). He says that is why it is always good to diversify our investment portfolio. This is inflationary expropriation.

Pliego has not divulged the name of the Latin country whose worthless currency is shown in the video. However, many are certain that he is referring to hyperinflation hit Venezuela. The South American country’s currency, the bolivar is one of the worst-performing currencies this year. Already, some citizens of Venezuela now use bitcoin to shield their investments and savings from inflation.

Mixed Reaction to Pliego’s Tweets

Meanwhile, the reaction to Pliego’s remarks about bitcoin seems to be mixed with mainly bitcoiners applauding the tweets. Non-bitcoiners are skeptical of digital currencies, in general, while others are surprised by Pliego’s bitcoin applause. One of those responding positively to Pliego’s tweet is user Bryan GF. In his reply to Pliego he asks:

Uncle Ricardo, in addition to Bitcoin, would you recommend any other crypto for example Ethereum?

Another user Carlos Dayan says “the important thing is to study how it works, understand the market cycles, why it rises or falls, so as not to be afraid of the price correction and take advantage of price discounts when it falls.”

However, users like Carlos Salinas have attacked Pliego for making the “irresponsible comment.” According to this Twitter user, “investing in cryptocurrencies carries a high risk due to volatility, you just have to invest the money that you are willing to lose without affecting personal finances.”

What are your thoughts about the Mexican billionaire’s bitcoin comments? Tell us what you think in the comments section below.

The post Mexican Billionaire Ricardo Pliego Invests 10% of Liquid Portfolio in Bitcoin- Says the Crypto Shields Against Wealth Expropriation appeared first on Bitcoin News.