KAGS CTC: The world of crypto explained

BRYAN, Texas – Cryptocurrencies have slowly become the hottest trend that promises to bring people huge profits.

However, many have come to believe that it is just a broken system that people should stay away from when looking at investment targets in 2023, according to a researcher.

To simplify a very complex topic: blockchain is the technology that enables the existence of crypto, while bitcoin is one of the most valued cryptocurrencies, which was created by blockchain technology.

John McCaskill is a clinical professor at the University of Texas at Dallas who studies trends in the financial sector. His latest work explains the complexities of blockchain technology, how they connect to cryptocurrencies, and how it all fits together.

With lawsuits looming over the FTX company, safe and secure investments may be the way to go as the future of the crypto world remains uncertain.

In November 2022, the world just saw one of the largest crypto trading platforms, FTX, collapse and file for bankruptcy. An estimated $415 million was stolen by hackers, according to FTX Co-founder Sam Bankman-Fried.

FTX reported that $8 billion in customer funds were missing because they were unable to meet the demands of the many people trying to buy into crypto and make money.

“You’re counting on your retirement, your college fund or something like that, I certainly wouldn’t invest in that,” McCaskill said. “I just wanted to stay out of it.”

He continued, “The cryptocurrency world at large, and they’re noticing some interesting things that started happening, and it looks like the market is being manipulated.”

Now in 2023, many people are trying to figure out if crypto is even worth investing in with how much scrutiny the platform has been under.

McCaskill believes cryptocurrencies are ultimately fronts to bring people in and manipulate who makes money and who loses everything. He even drew a parallel between gambling in Las Vegas casinos to clearly paint the picture of what the crypto world was really like, with the latter being an easier and less risky way to make money than investing in crypto.

“You’re literally fighting against very well-resourced companies like these big brokerages that use algorithms and have advantages over individual investors,” McCaskill said.

It’s a roller coaster experience that eventually has to come to an end. This time, he strongly encourages people to play it safe.

“Money chases money, these assets kind of chase each other around and they create these accelerating spirals, they’ll go up, then all of a sudden they’ll crack and crash,” McCaskill said. — It’s great when you’re going up.

However, McCaskill didn’t want the gloomy portrayal of crypto to discourage potential investors from finding something else to pursue financially.

“Investing in the broad market is probably the safest way to go,” he said.

Things like stocks, shares, are all things that can diversify and strengthen your financial portfolio.

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