Lack of Crypto Regulation

A recent article from the UK pointed out that the majority of cryptocurrency investors did not understand the coins are not regulated.  While on the surface this fact sounds scary to the average person, it is irrelevant to the asset class. 

Regulation does not provide any guarantee to the performance of any asset class whether you are looking at stocks, bonds, options, or other investments.  Regulation by governments is meant to exert control and to enforce “standards” on asset categories so investors can have a means to deciding between similar investments.  It is not meant to protect investors from losses or guarantee gains. For example, regulation for accounting reporting help investors decide if they should buy common stock in McDonalds or Tesla. 

However, since cryptocurrencies are built on fully auditable block-chain technology, the instrument itself is easily comparable “coin to coin”.  Therefore, “proof of work “ or “proof of stake” coins should be easily comparable to other coins without regulation.  The better consideration when purchasing a specific coin is the business case or purpose of the coin or its functions. For example, comparing EOS  and Tezos.

Government regulation of cryptocurrency is not going to stop it’s growth and adoption nor protect investors from losing money on trading crypto coins.