Bitcoin has surged past $100,000 for the first time, but a prominent entrepreneur has issued a stark warning about the cryptocurrency’s legitimacy.
The world’s largest cryptocurrency reached the historic milestone yesterday, driven by optimism surrounding Donald Trump’s election victory.
However, speaking on GBN America, entrepreneur Mark Matson claimed Bitcoin’s “only legitimate use” is for criminal enterprises.
He warned potential investors that the cryptocurrency is primarily used “for bribes, scams on the internet” and by cartels.
Mark Matson discussed Bitcoin’s success on GBN America
GBN AMERICA / REUTERS
The surge in Bitcoin’s value has been remarkable, with a 45 per cent increase since Trump’s victory on November 5th.
The milestone comes as Trump has pledged to make the US “the crypto capital of the planet” – a dramatic shift from his 2021 position when he called Bitcoin a “scam.”
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Mark Matson spoke on GBN America
GBN AMERICA
The price movement was further fuelled by expectations that Trump’s administration will create a more crypto-friendly regulatory environment.
The appointment of former SEC commissioner Paul Atkins, who is seen as pro-cryptocurrency, to head the Wall Street regulator has bolstered market confidence.
The cryptocurrency’s total market capitalisation now stands at $2.1 trillion.
Matson issued a stark warning about the risks associated with cryptocurrency investments.
Bitcoin is becoming more mainstream across the UKGetty
“People dramatically underestimate the amount of risk in the investments they have. They barely understand the risk in their stocks,” he said on GBN America.
He emphasised that cryptocurrencies, along with commodities and gold, are “toxic ways of investing.”
The entrepreneur highlighted a sobering reality about crypto success stories.
“For every billionaire or Bitcoin person, there’s tens of thousands, if not hundreds of thousands of people that have tried it and lost tons of money,” he cautioned.
Matson urged investors not to get caught up in emotional decision-making when it comes to Bitcoin.
“If you’re worried about creating a dream for your family and the future – don’t get caught up in hurting bias,” he advised.
He specifically warned against the fear of missing out (FOMO) on potential gains.
“Don’t get caught up in fear of trying to make something because someone made 20 per cent last year,” he said.
These emotional instincts, according to Matson, can be “very destructive in the investing process.”
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