back to article Swiss bankers warn: Three quarters of retail Bitcoin investors are in the red

Somewhere between 73 and 81 percent of retail Bitcoin buyers are likely to be into the negative on their investment, according to research published Monday by the Bank of International Settlements (BIS). In other words: the Bitcoin they bought is now worth less. Bitcoin is down 73 percent in the past year, and up 155 percent …

  1. Little Mouse

    "Three quarters..."

    ...and counting.

    1. Sceptic Tank Silver badge

      Re: "Three quarters..."

      I think you're wrong. Somebody is coining it. It's the 3/4 that are funding those somebodies.

  2. Mike 137 Silver badge

    No mystery really

    "It's a mystery, given that people don't generally use cryptocurrencies to make payments, to measure value, or to finance real-world investments"

    I guess it's for the same reason folks buy lottery tickets with odd of one in many millions of winning - the dream of big bucks for no effort expended. The massive initial rise in notional value of Bitcoin rang the gamblers' wake-up bells and, just like in a casino, the prospect of losing doesn't generally get anything like as much attention as the fantasy of winning.

    1. Dr Dan Holdsworth
      Pint

      Re: No mystery really

      Sixty-odd years ago my father came to the conclusion that there was no easy way to beat racecourse bookmakers, and instead became a part-time one. Fast forward to the mid 1990s and along came the UK National Lottery. Now, in any horse race the winner will generally come from the first half-dozen in the betting; outsiders rarely win. The people who bet on outsiders without special knowledge are what is technically known as mugs and their money, the mug money, was a bookie's bread and butter.

      Quite quickly after the National Lottery came into being, the mug money evaporated and has not come back. The morons who will bet on anything are not only stupid but lazy with it, and given an easy way to lose their money took up this golden opportunity with cries of great glee.

      Crypto investors now are just another flavour of mug money. They are idiots and they are going to lose their investments, they just haven't realised it yet.

    2. DS999 Silver badge

      Re: No mystery really

      With the lottery though a single ticket can get you those millions. With bitcoin even if you are deluded enough to believe you will get a 100x return you'd need to invest tens of thousands to reach 'millions', let alone the 'billions' of the recent huge US lottery jackpot.

      That's the problem with 'investments' like bitcoin, short term success like seeing your initial stake double in six months leads you to make stupid decisions thinking that will continue. You tell yourself "if only I had put more money in, that was a mistake I won't repeat" and throw caution to the wind. Everyone who plays the stock market even a little bit has bought a big winner and wished they'd been more bold and bought a larger chunk - or decided that winning would continue and ended up giving back their gains and maybe more.

      With the lottery it doesn't work that way, you don't hit a $10 winner one week and think "wow I'm trending upwards, I should buy two lottery tickets next week!" It is pretty much all or nothing, winning means either you win the big jackpot you dream about or you get the only winning you're ever likely to see - you win enough to fund your ticket purchases for the next few weeks/months. Very very few see those "intermediate" prizes in the thousands, to the point where they could eliminate them and no one would complain.

  3. Ian Johnston Silver badge

    This just in: Greedy and stupid people make bad decisions.

    1. Anonymous Coward
      Anonymous Coward

      The only difference between a smart person and a dumb person is the smart person knows how dumb they are.

      Greed has nothing to do with it. Since 2008 young people and those formerly known as young, now middle aged have had sweet FA to invest in other than crypto because it is frictionless. You don't need a mortgage, you don't need a loan and you don't need a broker. You just need a few quid.

      What is at play here is the massive divide between those that understand how to trade and follow markets and those that don't. Trading should be something taught at school as well as understanding tax, budgeting and other financial tools and skills...unfortunately none of this is taught at school which is why the poor will remain poor.

      1. Mike 125

        >Trading should be something taught at school

        It is. It's taught in posh schools, to the idiot daughters/ sons of aristocrats and billionaires, who then get jobs as CEOs in merchant banks, or fintech, or whatever dodgy money laundering outfit their friends own.

        Shhhhhh. Quiet. It's a gooooooood thing.

        1. martinusher Silver badge

          >It is. It's taught in posh schools, to the idiot daughters/ sons of aristocrats and billionaires,

          They've "got people for that". The system isn't unlike a smaller central American country where a handful of families own the place, the middle class are primarily employed to service and defend their needs and the mass are generally ignored (unless they start causing trouble).

          I'd actually advise small people to avoid 'markets' since they've long ceased to be a way of accumulating value and now merely provide raw material for spivs (sorry, "the financial services industry"). Before about 2000 investment was relatively boring, it had its ups and downs downs but over the long term it reliably earned about 8%. This is the sales line you'll get from a financial adviser today and the graphs (conveniently starting at the bottom, typically around 1930) will show this. After the great liberalization -- sorry, "modernization" -- of trading in the 80s and 90s returns have been more spotty, you need now to buy into something tangible and productive (resources like land or water, for example) and definitely avoid all these second and third order funds that claim to trade in this and that but actually are just part of a volcano of worthless paper.

          1. Azamino

            Markets

            Advising people to avoid the markets is very daft. Do advise against stock-picking or trying to beat the market, people should simply invest in a global tracker with the lowest possible fees (Vanguard for example).

            For anyone in the UK I suggest taking a look at the personal finances blog monevator.com for how to best make your money work for you. Being on top of your finances is priceless.

        2. Youngone Silver badge

          I had a quick look at the Wikipedia entry for this Sam Bankman-Fried bloke who seems to have become the face of crypto-gambling lately, and as far as I can see his only qualification is that; "he is the son of Barbara Fried and Joseph Bankman, both professors at Stanford Law School."

          1. DS999 Silver badge

            That means he grew up if not rich at least very upper middle class and privileged, and probably got the genetic advantage of a high IQ on top of that.

            That opens a lot of doors, and insured he had a network of friends around him who had plenty of disposable cash to invest and get his scheme off the ground.

            Someone who grew up in east LA, born to a single parent who worked three jobs to get by wouldn't have that education or that friend network to get him off the ground. Unless he had a lot of friends who were drug dealers, but they aren't interested in 'investments' or anything that would require converting their cash to something else and risk attracting the attention of authorities.

      2. Sorry that handle is already taken. Silver badge

        ...because it is frictionless...
        Right this moment the bitcoin mempool is clogged with tens of thousands of transactions as all the exchanges that haven't yet failed suffer bank runs. It's going to take a while to get through that backlog at an average of 4-5 transactions/second.

        You can give your transaction a better chance of succeeding by paying a higher fee, but in a situation like this how do you know how much of a fee you should pay? Frictionless indeed!

  4. jmch Silver badge

    Not surprising

    I would also be surprised if it's limited to Bitcoin. My hunch is that most retail investors lured in by booming markets lose money, whether that's in crypto, property or the stock market. There's apparently dozens of programs I keep getting offered / spammed to make a fortune trading my own stocks, bonds, swaps, futures, all stuff I have no idea about and therefore wouldn't touch with a bargepole. But I guess there are many people sucked in by the idea that they're cleverer than the people who actually do it for a living and know their stuff inside out.

    1. Anonymous Coward
      Anonymous Coward

      Re: Not surprising

      Or they're naturally drawn there because it's the path of least resistance?

      If you want a house, you need a mortgage...which needs a good credit score...which means you have to have had debt in the past. You also need a sizeable deposit.

      If you want to buy stock (and actually own the stock with associated dividends, not a virtual portion of a stock that has been loaned to you) you need a broker or a management fund...who will require a minimum deposit and various other minimum thresholds. You also have to deal with the fact that being a retail stock investor comes with various disadvantages that the "further ups" in the industry don't have to deal with, such as "trading hours" and so on. We saw this in action with GME...all the skullduggery that happened out of hours to "fix" the market...the retail trading desks shutdown "temporarily to resolve technical issues" etc.

      Now if you want to buy crypto...you just need a few quid and an internet connection. Credit score? Irrelevant. Minimum deposit? There are none or at the very least, they are extremely low.

      I think there is a significant proportion of people that invest in crypto because it is literally the only thing they can invest in and I think the attitude with those folks is that they might as well take a risk and invest in something, than do nothing. Doing nothing guarantees no results, doing something, even if it is high risk, still has a chance of returning some sort of result.

      This reminds me of a joke about a guy that kept praying to God to win the lottery. A bloke called Dave...every week, he'd get down on his knees and pray his ass off for hours to win the lottery, he made promises to help people, share the winnings and so on, he didn't want to win for selfish reasons, he just wanted to live comfortably and to help those around him...every week "please God, if only I could win the lottery, all my problems would be solved and everyone around me will be better off!"...eventually after a few years, Dave dropped to his knees and started on his final prayer..."God, fuck you, it's been three years, I've prayed every week and I still haven't won the lottery, I'm signing off and giving up on you!"...at that moment, the clouds parted above Dave and a large angry beardy face appeared...his voice boomed "Dave, you stupid fucking bastard...you have to meet me halfway and at least buy a fucking ticket!".

      1. Pascal Monett Silver badge

        Re: still has a chance of returning some sort of result

        But it is returning a result.

        A negative one.

      2. The Oncoming Scorn Silver badge
        Angel

        Re: Not surprising

        Is it wrong that the face I envisage is W.G. Grace.

        https://media.tenor.com/WTwCpP35tLIAAAAd/monty-python-god.gif

      3. Peter2 Silver badge

        Re: Not surprising

        If you want a house, you need a mortgage...which needs a good credit score...which means you have to have had debt in the past. You also need a sizeable deposit.

        I bought my first house over the pandemic. Having been taught to maintain my accounts at a credit and not buy things I can't afford, I had never had any debt. (even for cars etc; which have always been run on the basis of bangernomics).

        By virtue of obtaining a mortgage I think that I can say with reasonable certainty that you do not in fact need to have had debt in the past, and of course the size of the deposit is proportional to the value of the house, so if you buy something on the lowest end of the property market which needs work then it'd work out at under half the price of a new house on the other side of the road which needs work. (to finish it; which should probably have happened before the owners moved in....)

        1. doublelayer Silver badge

          Re: Not surprising

          I'm guessing you have had debt, specifically a credit card. If you use a credit card like I do, essentially just as a way to make payments with all bills being paid off in full as soon as they come in, this counts as repeatedly taking out debt for a few weeks and successfully paying it. This establishes a history of credits without you having to pay any interest and is one of the safest way to increase a credit score. You are more likely to have gotten good credit terms with a history like that than if you have never used a credit card and literally have no credit record for banks to look at. You could have gotten one even under those conditions just with information about your job, savings, and income, but given that you're online and probably in a developed country, I think it's likely you have a credit card somewhere that you use.

          1. Anonymous Coward
            Anonymous Coward

            Re: Not surprising

            > I'm guessing you have had debt, specifically a credit card.

            Are credit cards, as opposed to bank / debit cards, still a thing?

            1. Sorry that handle is already taken. Silver badge

              Re: Not surprising

              Yes of course. They can have higher transaction limits.

            2. doublelayer Silver badge

              Re: Not surprising

              Yes. Depending on your country, they may be more or less common, but about 62% of adults in the UK have one. Other countries vary, from Canada's 83% through the U.S.'s 66% and Germany's 57% to India's 4% (it goes further down, but I'm looking for countries where most El Reg readers are). Perhaps you're in one where credit cards are less common, but although you don't need them, they're reasonably common in many places.

              1. Anonymous Coward
                Anonymous Coward

                Re: Not surprising

                I used to have one, back when finding yourself in a strange land without luggage / passport / money was a bigger annoyance than it is nowadays, but one that could be solved by walking into a hotel and asking them to put you through to American Express who would then sort you out in minutes.

          2. Peter2 Silver badge

            Re: Not surprising

            I'm guessing you have had debt, specifically a credit card.

            And you'd be wrong. Visa debit card.

            The bank simply turned around and asked for a bank statement demonstrating my claimed salary arriving into an account for a number of months, and also my anticipated expenditures to be sure that I could afford the loan.

      4. doublelayer Silver badge

        Re: Not surprising

        At one point, setting up a relationship with a broker did require the minimum deposit that you claim. Today, not so much. Online trading platforms have significantly reduced minimums and fees such that several of them have values of zero for both. Trading stocks or other exchange-traded things for a retail investor is significantly easier than cryptocurrency in many ways, although it's not really that more likely to work out. People who are new to investing often don't know what they are doing, and that holds true for stocks and cryptocurrency. Stocks are less volatile most of the time, so they're less likely to lose everything immediately, but not guaranteed at all.

        Your reference to GME (to other users, an American company GameStop which was talked up by an online message board and had a surge in activity in 2020) suggests you should already know this. After all, people were buying that stock without having a clue about it. Some people suggested a reason the company could have more value. Their suggestions weren't understood and could have been lies designed to get others to buy it and increase the price so that the original buyers could sell at a profit. A lot of people made money from that. A lot of people lost it. The stock is trading 94% below its peak during that craziness. This is the chaos that comes from people gambling (it could be called investing for people who studied the situation, but since they didn't, it's no different) with things they don't understand and, in most cases, make no effort to learn about. If you put a lot of your money into something, it's useful to know something about it.

      5. Anonymous Coward
        Anonymous Coward

        Re: Not surprising

        > If you want a house, you need a mortgage

        "Need" is a bit too strong a word, isn't it?

        1. arbivore

          Re: Not surprising

          Own three houses - never had a mortgage, bank loan or credit card debt older than a month. Worked hard in two jobs at once, saved, lived frugally and built a business in IT with an initial purchase of a PC and a printer. Still living in a (very nice) rented house while the others bring in rents.

    2. DS999 Silver badge

      By the time

      You've seen stories in mass media for a couple years talking about how people are getting rich in this new market that "will never go down", that's the time to get the hell out!

      That was true with the day trader boom in tech stocks in the runup to Y2K, that was true with the house flippers in the runup to the 2008 crash, and that is proving to be true with the cryptobros pushing bitcoin.

      The problem is you don't see and understand the pattern until you've lived long enough to watch it happen several times. That's why most of the day traders buying and selling Enron were young, most of the house flippers taking NINJA loans were young, and most of the crypto traders betting their future on bitcoin were young. The people who got burned day trading Enron a couple decades ago were no doubt staying far away from bitcoin.

      Wait another decade and Gen Z will see its own bubble. There's no way to predict in what, but it will allow them to feel like they are at the forefront of a new paradigm and us old farts warning it is a bubble are just too backwards to see the future clearly like they do.

      1. ecofeco Silver badge

        Re: By the time

        Every word the truth.

        1. seven of five

          Re: By the time

          Somehow, experience and cynism seem to go hand in hand.

  5. jake Silver badge

    People are bad investors. This is nothing new.

    The canonical work is Charles Mackay's "Memoirs of Extraordinary Popular Delusions" from 1841.

    The 1852 reprint, now titled "Memoirs of Extraordinary Popular Delusions and the Madness of Crowds" is available on Project Gutenberg. It is well worth a read.

    For folks who prefer copy/paste to point&click:

    https://www.gutenberg.org/files/24518/24518-h/24518-h.htm

  6. b0llchit Silver badge
    Holmes

    Cryptocurrency fails in the long run. The icon should say it all...

  7. Anonymous Coward
    Anonymous Coward

    They invest in it because it's the only thing they can invest in.

    Want a house? Fuck you.

    Want to buy tangible stocks? Nope, it's a loaded market that works in the favour of funds and brokers and requires masses of capital to get anywhere.

    Want to start a business in a recession? Nope!

    Want to chuck £50 at a shitcoin and hope for the best? Why not?

    1. Stork

      Factually wrong

      My son had a smallish amount, four digits. He opened an account with an online broker and put it in a world tracker etf, as buy and hold.

      This is never going to be a lottery ticket but we talk investment, not gambling.

      1. dinsdale54

        Re: Factually wrong

        Some good advice - although obvious - from an investment fund manager was "decide before you start whether you are investing or speculating because the stock market is a very expensive place to find out.

        The crypto market has proved to be an even more expensive place to find out.

  8. Peter D

    Stupid is as stupid fors

    Shill 1: In these uncertain economic times it can be difficult to make decent returns which is why a broadening of your portfolio can really help.

    Shill 2: What do you recommend?

    Shill 1: For me the answer was crypto. I don't work anymore because for my $750 investment I am getting an $11,500 a week return.

    Shill 3: Same. I use Crown Prince [redacted] who is authorised by The Nigerian Central Bank.

    Shill 4: I do, too and his fees are so low...

    On and on it goes.

  9. Oddlegs

    FTFY

    Losses are only realized upon sale

    Surely you mean "gains are only realised upon sale"?

    Bitcoin has literally zero underlying value. At least with shares you own a piece of that company, with fine wines you own something that hopefully tastes nice and with art you own something that's pleasing to look at. Until and unless you can palm bitcoin off to an even greater fool then everyone's sitting on a loss.

    1. doublelayer Silver badge

      Re: FTFY

      I suppose, but those "ownerships" aren't exactly very useful. With a stock, you own a piece of a company that will never listen to you about what it is doing and which the company can damage with little risk. With wine or art, I hope you actually bought it to enjoy that aspect, because if you bought either with the hope of making money and you can't, having an expensive liquid to drink won't help much if you don't appreciate the qualities that make it so expensive and you can get something nice to look at for much cheaper. Every investment comes with some risk, so I wouldn't automatically assume that something having a more obvious tangible value means that much. This doesn't mean that cryptocurrency is good (I recommend that nobody buys it as an investment), just that tangible value is no guarantee of anything.

      1. John Brown (no body) Silver badge

        Re: FTFY

        Although, interestingly, when "the market" talks about a "housing crash", they usually mean the prices have stagnated instead of going up. Property prices never seem to actually go down. At least not in the UK.

        1. Stork

          Re: FTFY

          I arrived in the UK in 1992. Negative equity was a thing.

      2. Ken G Silver badge

        Re: FTFY

        There is in the UK (which I didn't discover until after leaving there) an exemption on capital gains tax for manufactured objects. If you buy a handcrafted or jewel encrusted watch and let it sit, you can sell it on without paying the taxes you would for the jewels alone. Classic cars are another area that benefits, if you can resist the temptation to thrash it round the countryside on weekends.

    2. Sorry that handle is already taken. Silver badge

      Re: FTFY

      Indeed. When it comes to cryptocurrencies, losses are realised as soon as you buy.

  10. scrubber

    Anon

    "understand why retail investors continue to participate in cryptocurrency exchanges"

    A darn good question as the main benefit of cryptocurrency is not going through kyc and enabling other people to know or control what you want to own.

  11. VoiceOfTruth

    Maybe it is time to stop using the word currency

    These are not currency as such, these are cryptographic hashes. Currency implies widespread acceptance. Who actually accepts these hashes except people tied up in the crypto token world?

    1. Stork

      Re: Maybe it is time to stop using the word currency

      How about virtual tulip bulbs?

      1. Ken G Silver badge
        Trollface

        Re: Maybe it is time to stop using the word currency

        Ah, you're talking about NFT's - non fungiable tulips

    2. Peter2 Silver badge

      Re: Maybe it is time to stop using the word currency

      Who actually accepts these hashes except people tied up in the crypto token world?

      People running ransomware operations, drug dealers and people doing money laundering. And Tesla.

      1. General Purpose

        Re: Maybe it is time to stop using the word currency

        And Tesla? Not any more!

        In Feb 2021 they spent $1.5bn on bitcoin and announced they'd start accepting bitcoin in payment. In May 2021 Musk tweeted that they weren't accepting bitcoin any more (he didn't say how much they'd taken in the three months). By July 2022, Tela had offloaded about 75% of its holding and overall, at the price of bitcoin then, was down $106m.

    3. Sorry that handle is already taken. Silver badge

      Re: Maybe it is time to stop using the word currency

      Dunning-krugerrands?

  12. Anonymous Coward
    Anonymous Coward

    surprised

    "And this group ends up fueling the profits of larger investors, who sell their holdings as new market participants drive up the price."

    Like, you mean, a Ponzi schema ? Oh, the shock !

    "Hughes observed in his letter that speculators would get better investment results from gambling in a casino, where a mere 56 percent of players lose "come" bets in craps or 58 percent lose playing basic strategy in blackjack."

    Yep, because in normal casino gambling, you can know the odds. In the case of crypto, you'll never even estimate them, cos everything is invisible.

    1. doublelayer Silver badge

      Re: surprised

      No, not like a Ponzi scheme. It could be like a scheme, but the specific type would be a pump and dump scheme. The different schemes have very different executions which leads to differences in detection and recovery. Importantly, a Ponzi scheme requires a central operator taking Ponzi's place, and a pump and dump scheme can work without one with individuals working, either in concert or without coordination but to the same effect.

      It might also not be a scheme at all, given that the major difference between a pump and dump and a bubble is about the private thoughts of participants. Definitions are important.

      1. David Hicklin Bronze badge

        Re: surprised

        >> pump and dump scheme

        have they given up with that one on the penny stocks/shares scam? I've not seen one for a very long time

  13. Alan Bourke

    Why it's almost as if

    you know, it's essentially a Ponzi scheme.

  14. Gob Smacked
    Pirate

    Not there to get rich quick..

    Bitcoiners are not investors; they don't mind the volatility. Just sayin'

    Price is only relevant if you sell back into your homeland's currency. Or use it to pay for goods or services.

    But as bitcoiners are not investors, they don't like getting rid of their "better" money and just sit on their stashes.

    As 90% is in circulation and about half of that hasn't moved for years: most wallets are in the plus in relation to the current price. Why should they care?

    Bitcoin is not a way to get rich quick. You need the casino cryptos for that (and accept your losses that come with that circus)

    1. Oddlegs

      Re: Not there to get rich quick..

      most wallets are in the plus in relation to the current price. Why should they care?

      They're not 'in the plus' until they come to sell. Currently all they own is a few long random numbers which have literally zero value unless there's a greater fool round the corner willing to pay. If 3/4 of new 'investors' lose money then pretty soon there won't be any new investors. Given that new investors are the only thing giving bitcoin any value whatsoever it will drop very quickly when there aren't any.

      The decline will be a bumpy ride with ups and downs but the realisation does seem to finally be dawning that bitcoin is nothing but another ponzi scheme.

      1. Gob Smacked

        Re: Not there to get rich quick..

        > They're not 'in the plus' until they come to sell.

        Correct. And that's just it. They don't even want to. It's a mindset that you have not reached and maybe never arrive at, considering the amount of misinformation that's going around.Understandable also, with all these crypto gamblers failing using their favorite cloned currency of the day.

        In the mean time, banks, large companies and big established investors and even governments are trying to get more and more bitcoin on their balance, silently as they don't want to push up the price. You can follow the money literally on the blockchain and tie it to their official reports.

        Developing countries have never been able to tag along financially and most of their currencies get debased quickly. It's not their governments that step into bitcoin, but their population does. It's a groundswell you will not find in the western financial press or hear about from trendy youtubers.

        I don't mind the downvotes either. It's ignorance playing out. Let's see where we are in 10 years' time.

      2. Gob Smacked

        Re: Not there to get rich quick..

        Just a small follow up: as early bitcoiners have already claimed most, it's not them that are "investing". It's the smart money right now, scrambling to get a position in what's left on the table and still to be mined the upcoming 100 years.

        Don't even know why I'm explaining; whispering when the world is burning won't help much. Maybe someone without banking access but with a smartphone picks it up and help themselves to a commercial foothold...

  15. fg_swe Bronze badge

    ANSWER

    Many people no longer trust the Fiat money system, because of crazy zero percent interest policies.

    Bitcoin is finite, which makes it an attractive Wealth Store. Similar to Gold, Silver, Platinum,

    If the central banks find a way back to Deutsche Mark, people will again invest in cash. In the 80s, DM was as good as gold!

    I can still.remember being told how an interest rate of 3% was dangerously low. Now we have seen 10 years of zero, consequentially massive inflation. As predicted.

    State oversight of banks has been craptastic and no criminal banker was ever thrown into jail. Not even the bookcooker FULD.

    We now reap the fruits of lax oversight.

    1. fg_swe Bronze badge

      Re: ANSWER

      Acoording to his Wiki page, he also sold a 14000000 mansion for 100 to his wife. Typical.behaviour of a criminal who fears being hit with a compensation claim.

      Thats the NATO problem: the bankers were allowed to morph into bankrobbers.

      1. fg_swe Bronze badge

        Re: ANSWER

        Having said that, we are still all scraping along and nobody should dare to attack us. NATO as a whole is the greatest empire the earth has ever seen, both in geography, number and quality of weapons. Our servicemen are trained to qualities never been seen or matched.

  16. Skiver

    This is my surprised Pikachu face.

  17. Anonymous Coward
    Anonymous Coward

    Free lunch

    I don't think this analysis is entirely fair. Casino's often offer subsidized food as a hook.

  18. Anonymous Coward
    Anonymous Coward

    Working class dupes

    Think of all the hard working toiling scammers applying ransomware in the mine faces who rely on crypto to earn their daily bread. They may get hurt when the price drops suddenly - their $1 million haul suddenly worth only $200K. Let's not forget all the hard working scammers, drug lords, tax evaders, and sanction busting weapons dealers whose sweat provides the fundamental value of crypto in the first place. Perhaps crypto should be nationalized. Maybe it already effectively is because enough politicians have their fingers in the toilet bowl.

    A clean flush is what's needed.

  19. ecofeco Silver badge

    Suckers!

    We hate to say we told you so...

    Oh wait. No we don't.

    Suckers!

  20. Anonymous Coward
    Anonymous Coward

    Hang on a minute

    > Bitcoin is down 73 percent in the past year, and up 155 percent in the past five years.

    How can it go down by more than 100%?

    If you paid X amount of money for a Bitcoin and the price of Bitcoin reaches zero (which I don't think it has, so far) then you lose 100% of your "investment". How is that 155% calculated?

    1. doublelayer Silver badge

      Re: Hang on a minute

      It can't go down by more than 100%, but the sentence refers to it going up by more than 100%, which is more possible. It went down by 73%, which is within the 0-100% possible range for it going down (unless you're willing to have it go down by a negative rate instead of going up).

    2. David Hicklin Bronze badge

      Re: Hang on a minute

      That took while to parse as well

      I think they are trying to say (rather badly) that the price today is 155% higher then it was 5 years ago, but the peak was a year ago and since then it has declined 73% to reach today's price (5 years + 155%).

      The ones who have lost are those that jumped on during the surge to the big peak a year ago, causing the price to surge even more (assuming they hung onto them hoping for an ever higher price), whilst those who have held BC for >5 years were cashing in to make a killing.

  21. MrGreen

    Bitcoin or CBDC’s ?

    So which one are you choosing, Bitcoin or CBDC’s?

    This isn’t a joke, this is the reality. People are buying Bitcoin because they don’t want to be slaves controlled by the government’s CBDC. 105 countries are testing CBDC’s and governments want to attach it to digital ID’s and your carbon footprint.

    This report is the continuing FUD to scare people away from Bitcoin adoption. The FCA saying it’s bad yet banks are buying loads of it.

  22. Marty McFly Silver badge
    Flame

    Damn, a crash!

    All those poor people who bought BTC when it was at $1,200 and then it crashed to $300. They have got to be really pissed about the price today.

  23. Kev18999

    The question is how many stock investors that put money in 2019 are still in the green, that's the beginning of the bull run. I would wager it's the same. Crypto and stocks are all risky asset classes that fall and rise reflect monetary policies and economic speculations.

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