President Joe Biden recently signed an executive order giving federal agencies direction to study the risks and benefits of cryptocurrencies. Many investors immediately balked, believing the move was intended to start taxing the pretend online money the same as cash. That may not be the case, according to one influential voice.
Daymond John of Shark Tank recently spoke to TMZ about his thoughts on Biden’s order. John believes that it’s good news for crypto traders. Daymond thinks the move will legitimize cryptocurrencies and encourage more people to invest. Many critics have noted that without regulation, the markets for the invisible coins amount to a pyramid scheme, with wealthy investors like Elon Musk able to pump up the value of different cryptos with a single tweet.
Daymond John doesn’t believe that is the case at all. No regulations have been announced yet. The study is just getting underway. Daymond thinks the president speaking about crypto will only spike interest in the highly speculative market.
John believes to avoid the kinds of scams that have plagued the crypto trade, there has to be some form of regulation. 16% of Americans have already invested in the latest trend. Many of them have no idea what their money is going towards.
Regulation of cryptocurrency markets could solve that problem. The markets reflected the same. Bitcoin saw an increase in price between 5 and 8% after Biden signed the executive order.
Time will tell if Daymond is on the mark with his assessment. As it stands, investors with fear of missing out have been scammed left and right. A regulated market could help alleviate the inordinate amount of scams and pyramid schemes that have made crypto investing such a scary proposition for many.
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