Research Center in Mexico Warns Locked-Down Citizens to Keep Away From Cryptos
The director of a business research center in Mexico has warned citizens against hasty investments in crypto during the current crisis.
On May 4, Alberto Aldape Barrios, director of the Center for Business Research and Development (CIDE), called on the residents of the city of Aguascalientes to be cautious with any investment opportunity in cryptocurrencies.
In statements to local newspaper El Heraldo, Barrios warned of “financial speculation” aroused amid the COVID-19 crisis, so there would be high risk with investments in bitcoins (BTC), futures, options, and Forex.
Bitcoin’s volatility post-COVID-19 could be dangerous
The head of CIDE thought that the price of Bitcoins will leap when the pandemic is under control. Barrios said:
“With cryptocurrencies, you cannot speculate because you can lose all your money in one day. No institution backs that currency.”
However, the CIDE director claims to be aware of the adoption of cryptocurrencies in other countries. Still, he does not believe that it is advisable to invest in bitcoins in Mexico, since “it is a market for professional speculators.”
He also called for locked-down citizens to be cautious with offers to invest in futures, options, and Forex markets since he claims that the fall in oil was a clear example of how risky this type of investment is.
About the flow of information on social networks, Barrios said that people should be careful with any promises of generating a lot of money in a short time.
Popularity of crypto in Mexico keeps rising
The appreciation of the CIDE director contrasts with the latest information regarding the adoption of cryptocurrencies in Mexico.
Cointelegraph Español reported on May 4 that the adoption of cryptocurrencies in Mexico has been increasing since 2018.