Crypto Investors Are Advocates of The Big Fool Theory – Bitcoin News for Emerging Markets

Incoming Philippine central bank governor Felipe Medalla said that those who invest in cryptocurrencies such as bitcoin are advocates of the Big Fool theory. He also believes that people who invest in cryptocurrencies do so because they want to “hide their money from the government.”

A “very scary” investment strategy

Felipe Medalla, the new governor of Bangko Sentral ng Pilipinas (BSP), claimed that Bitcoin investors only buy the cryptocurrency because they are sure that others will buy the same digital asset at a higher price. Speaking at a virtual roundtable discussion organized by a local media group, Medalla called such an investment strategy “very scary.”

Additionally, as report In the business world, Medalla believes that the value proposition of cryptocurrencies is based on the so-called Big Fools theory.according to Investment Encyclopedia, the theory asserts that prices rise because investors can sell overpriced securities to other investors or “big fools.” Investors who subscribe to this theory have been known to ignore valuations, earnings reports and all other data.

Use cryptocurrencies to hide funds

In addition to the Big Fools theory claims, this is also recently proposed Incoming BSP governor Bill Gates said those who choose to invest in cryptocurrencies do so because digital currencies allow them to hide their assets. He explained:

This is a new tool that adds the ability to do this. There are many people who want to hide their money from the government.

While the BSP does not directly regulate cryptocurrencies, it has issued guidelines requiring virtual asset service providers (VASPs) to be licensed. Meanwhile, Medalla was quoted in the same report saying that he approved the application of know-your-customer (KYC) and anti-money laundering policies on VASPs.

What’s your take on this story? Let us know your thoughts in the comments section below.

Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

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