Senator Elizabeth Warren Gets Schooled on Crypto!
Did Crypto Risk Cause Silvergate Bank Failure? Senator Warren Warrants its Blame but Critics Disagree
Elizabeth Warren, Senator of Massachusetts and (former?!) 2020 presidential candidate, recently weighed in on Silvergate Bank’s liquidation with surprisingly ‘crypto-skeptic’ talk. She blamed Silvergate Bank’s failure – a bank known for its support of the crypto industry – on ‘crypto risk’.
Well, it looks like someone is not on board with the upside of digital currency.
Critics were quick to reply to the Senator’s claims. Financial analyst, George Gilder, was one of the first to respond, writing a letter to the editor in Forbes that slammed the Senator’s ‘terribly misinformed’ comments. According to Gilder, while Silvergate’s demise has been attributed to the bank’s failure to stay current with the times, Senator Warren’s remarks showed a ‘general misunderstanding of the trends and technology of modern finance’. Ouch!
But why is Senator Warren so anti-crypto? Well, it partly boils down to her plans for tackling Wall Street reform – most notably, her publicly declared desires to ‘make big, structural changes to the tech sector’.
So, What Should You Make of This?
Cryptocurrency is here to stay, and Elizabeth Warren’s comments don’t change that. Critics are blasting her claims that Silicon Valley will cause financial ruin, and seem to view crypto with a more open eye.
If you’re ready to get your feet wet in crypto, be sure to do your research, and follow these tips:
- Do your due diligence: Research the currencies and exchanges you plan to use, and look for reputable organizations.
- Manage your risk: Manage your portfolio, and always use secure wallets to store your cryptocurrency assets.
- Crypto isn’t ‘get-rich-quick’: Cryptocurrency is an investment, not a get-rich-quick scheme.
Word on the street is that Senator Warren plans to release a ‘White House report’ this week that will address her concerns with Silicon Valley and the ‘crypto risk’ it poses.
If her report blames crypto like her recent remarks, we expect to see just as many critics pointing out the flaws in her arguments.
Crypto may not be for everyone, but with proper research and understanding, it can be an incredibly rewarding venture. Despite Elizabeth Warren’s comments, don’t let her discouragement stop you from exploring the cryptocurrency market.
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