Influential people come here. The Financial Conduct Authority of the United Kingdom (FCA) has announced a মিল 11 million (GBP) campaign to list celebrities and influential people to warn the general public about the dangers of high-risk investments. The FCA is a UK financial regulatory body established in 2013-2013. It operates independently of the UK government.
Covid-1 is an interesting dynamic considering the context of public messaging related to information. There are many examples of influential people being paid on social media to spread specific messages about Kovid, such as making masks mandatory, vaccinating, and so on. , It’s just about messaging mechanisms, motivation and the place of people’s trust in others. Say what you want about the social health of the influential culture, the truth remains that it exists and a huge amount of people actually have some degree of faith in the influencers that they follow on social media. This is why this kind of government program related to Kovid has been effective.
The FCA is now tapping this playbook to launch a campaign message against “high risk” investments to the wider public. Trading for retail investors on platforms such as Robinhood during the Covid Lockdown in 2020 increased significantly, especially in the millennium. The huge increase in unemployment in the combination of unemployment benefits, incentive payments and rent suspensions leaves many people with extra cash and plenty of time in their hands. Many have invested in cryptocurrencies and so-called “meme stocks”. It is probably fair to assume that many of these individuals lacked a basic market understanding or that they were simply pursuing short-term gains.
The argument can be made that this was extremely reckless behavior and in the end many of these new investors will hurt themselves financially. That is exactly what the FCA is claiming. In their announcement, they are going to spread a warning message about “high-risk” investments specifically referring to cryptocurrencies and how many of these new retail investors were among the first investment cryptocurrencies. In Robinhood, for example, a large portion of the money invested in cryptocurrencies flowed into dogcoin.
Now, it is not entirely unreasonable to warn people against taking steps that could endanger themselves financially. However, there is more context than this in this FCA campaign. They specifically mentioned in the declaration that .6. Millions of people hold more than 10,000 GBP of “cash investable assets”. Why? Because the FCA is trying to directly encourage 1/5 of those people to start investing in the next five years. So at the same time they are going to start paying social media influencers to spread the “high risk” investment warning so that they can clearly protect investors, they are actively trying to encourage more people in the population to start investing their money. Keep it in cash.
Do you see conflicts of interest and goals here? All investment comes with risk and it will always be in the case. There seems to be an attempt by the FCA to control what people are investing rather than protecting them from risky investments. Bitcoin is a huge potential threat to the legacy market. The more people invest in Bitcoin, the more liquidity will flow out of the legacy market. The dollar I use to invest in Bitcoin is a dollar that does not increase the value of the S&P 500. The dollar I use to invest in Bitcoin is a dollar that does not raise the price of real estate in some places. Depending on all of these markets, new, younger money will continue to be used to sell old money as well as transfer intergenerational assets. I can imagine the offerings of Bitcoin and other cryptocurrencies being a pretty scary offer for the legacy institution to soak up that liquidity instead of the stock market, real estate, etc.
We are at the stage of “this is how they fight us”. But it’s not going to be nasty and obvious at first. It’s going to take the shape of things like this program, which is financially encouraging influential people who say “Bitcoin is bad, but the stock market is good.” They will try to pressure people’s arms to give up their hard-earned cash and put it on the market “not to be deprived of profit”. I don’t think they really care about people like that; They only see that money as a necessary fuel to keep the register scheme going, and like the United States, when it comes to oil reserves, they will do whatever they can to achieve it.
Don’t lose sight of it. It’s an information war coming and programs like this are one of the ways to fight them.
This is a guest post from Shinobi. The opinions expressed are entirely their own and BTC, Inc. Bitcoin Magazine.