hey everybody welcome to my channel and welcome back to my subscribers this is bald guy money i am bald guy and today i'm going off script to talk about a new story this news story published by reuters with the headline be ready to lose all your money in crypto eu regulators warn so i was inspired to make this video because somebody very close to me sent me this article and said should i be worried should we be worried this person knows that uh i have a lot of of holdings in crypto and that i'm very


interested in the space and you know this person was a bit panicked you know they said i've seen this headline be ready to lose everything should i worry should is it time to get out of crypto basically was what that person was asking me so what i want to highlight is uh basically two things number one is that i agree with the headline of this article you should absolutely be ready to lose everything in crypto but it comes with a caveat and that caveat is you should be ready to lose everything if


you're not properly doing your research and taking care of managing risk now coming back to this article from reuters and here's an excerpt from the article here it says that regulators are increasingly worried that more consumers are buying seventeen thousand seventeen thousand i can't believe it's 17 000 different crypto assets including bitcoin and ether which account for sixty percent of the market without being fully aware of the risks regulators said so i don't necessarily agree with how this


article has maybe unintentionally unintentionally framed bitcoin and ethereum as being extremely risky but there is something in there that i think absolutely does show that you can lose a lot of money in this space and it's the fact that there are 17 000 different cryptocurrencies a lot of which are what we call ishcoins that have absolutely nothing backing them up but coming back to the article there is something and it continues on in the article that i think is very important that everybody out there who's


considering investing in the crypto space or already has absolutely needs to keep in mind and here's that excerpt and it goes consumers should be alert to the risks of misleading advertisements including via social media and influencers consumers should be particularly wary of promised fast or high returns especially those that look too good to be true and that is the core of what i agree with in this article because there are a lot of stories like this if you've seen this story the adult film star elena rhodes


launched her nft project called cryptosys nfts and basically right after they bought it the value of all of these nfts so that like kind of money locked into this project declined significantly after she had gone on her instagram and twitter and touted these nfts as an investment so basically they call this in the crypto space it's a rug pole it's a classic rug pull and and this is not something that is uncommon so you will regularly see influencers saying you know get this coin get that coin and


basically what you have to understand is they are being paid to promote those coins what happens is there are people sitting behind these projects that will initially at the beginning as people start to buy it up pump money into the project pumping up the value of the token coin nft whatever it is that exists within the in that particular crypto project and they will tout it as yielding fantastic returns thus attracting more regular people like you like me to think wow this is maybe something i can invest in and make a


quick buck on and throw their money into it but the caveat is they know exactly when because they can see of course when the money starts to slow down that's coming in and what they do is and why it's called a rug pull is they pull the rug from out out from under the project taking all of the liquidity that has been put into it by retail investors again like you and me and putting it right into their pockets and that is what the european union is trying to protect consumers against and although i have a lot of


criticisms of the european union with respect to their efforts to protect consumers i really don't have many criticisms there because i think they actually do a good job of trying to protect the interests of their citizens and consumers within the european union and have done a lot of good things although i despise large government i think that in this respect they've done a lot of good things to protect consumers and by putting out this information for people who are entering the crypto space


this absolutely is imperative for everybody to know because it is very sad to see people like with this lana rhodes project getting their money taken for absolutely no good reason now that said i do want to draw a distinct difference between for example two of the crypto projects mentioned in here bitcoin and ethereum as they are really not like most of the other 17 000 cryptocurrency assets that are out there right now and the reason is number one when it comes to bitcoin bitcoin's value is derived from its scarcity and i've


said this in videos before it is literally digital gold something that is not inflating at a large amount in fact the total amount of bitcoin is capped at 21 million bitcoin and it is widely recognized by people as having value due to the scarcity of it just like gold even though we might look at them as shiny rocks and same thing might go for silver it does have value because the market has decided that this is a scarce resource that we can allocate value to in order to protect the value of transactions or the value


of labor within it by treating it as some type of currency or asset and the next one i want to talk about is ethereum because it is not like bitcoin it is a utilitarian project in the sense that the value of the coins from the ethereum blockchain are derived from the usefulness that the blockchain actually has for people and businesses who use it for example and i've mentioned this before ethereum is a smart contract platform and if you did not know that and you have invested in ethereum then you know


that this article that i've just cited from reuters is probably correct that people are investing in these projects expecting big returns but not exactly knowing what they're investing in so if you're not perfectly clear on what ethereum is and what a smart contract platform does i suggest you go to my ethereum versus solana video where i describe it in deep detail but i will say here that the value of ethereum is derived from the fact that you can execute what are called smart contracts on the platform


and the smart contract is basically if x happens then y happens so you can imagine that with respect to just the bond market the international bond market which is worth trillions of dollars you can absolutely cut out financial intermediaries banks etc who are out there selling these bonds and get them directly into retail investors like you like me on the blockchain directly from people who are issuing these bonds without having to pay a chunk of that money to again as i mentioned the financial


intermediary and that is why a smart contract platform like ethereum has so much value and the value of the coins that are sitting behind the chain are going up in value look that's all i want to say for this video make sure to smash up the like button this get uh by doing that you get this message out to more people and i think it is very important to understand number one don't get scared when you see a headline okay what you need to do is you need to open the article and you need to understand what's within it and


understand this there are a lot of cryptocurrency crypto asset projects out there that are absolute rubbish in fact if i had to make an educated guess right now i'd say 99 of them out there are absolute trash that don't deserve the time of day be careful when you're investing your money and remember when it comes to my point of view the best projects that i'm holding right now are bitcoin ethereum and solana those are by far my biggest holdings in crypto more than 90 of my total crypto investments right now so


again if you're interested in entering the crypto space buy the quality stuff don't buy the atlanta roads nfts don't buy the the ish coins as we call them buy the good stuff if you've done your research and you understand what it is you're buying that said everybody i wish you all the best have a great day i'm wishing you happiness i'm wishing you success let me know what you think about this totally unscripted format in the comments section as always any comments you leave


i will respond to i hope to see you in the next one adios