Colorado Securities Commissioner (CSC) Gerald Rome had some things to say concerning investments in digital currency and cannabis. It seems the state employee where reefer is legalized doesn’t see the incredible amounts of capital injection happening all around the world from these businesses. In fact, it’s interesting he and other U.S. officials have not seen the level of wealth being poured into the state provided by cannabis companies.
Giving an advisory on behalf of Colorado states CSC, Rome believes three emerging investments are very risky right now. The ventures mentioned are some of the fastest growing sectors in our global economy right now which include, cannabis, binary options, and digital currency. These newly conceived business services look to being doing well in Rome’s eyes yet they can be dangerous to those who think it’s the “next big thing” The securities commissioner feels there is plenty of opportunity within these environments however if you reside in CO should probably contact your division of securities for investment advice. Gerald Rome says in his report:
“At first glance, marijuana, binary options and digital currency appear to have no real connection to each other. But what they all have in common is their recent emergence as three investments both sellers and buyers hope it will become the ‘Next Big Thing.’ Before you consider investing, make sure you understand what these products are, their benefits, and their risks” — Gerald Rome, Colorado Securities Commissioner
According to ArcView Market Research, “The legal cannabis business is the fastest growing new industry around.” Rome in his warning report reveals due to lack of regulation and semi-legitimate status the sector is filled with volatility. Binary Options is another concern for Rome as he views the investment as an online gambling tactic rather than a traditional security. Finally, Bitcoin is a digital currency that to him “fluctuates wildly” and users should proceed with caution and follow up with regulatory advice. He says the virtual money is filled with news rumors, and the digital realm is filled with malicious hackers. The commissioner believes in his advisory that many precautions should be taken with these three operations and it is most important to rely on state-issued findings for warning signs. The Colorado state official is not the only one concerned with these three investments as the Department of Financial Institutions is also giving the same warning. With Bitcoin investing the DFI says:
“Different countries and jurisdictions have little uniformity” on regulations, thus leading scammers to “take advantage of the confusion and contradictions to misinform potential investors.” Digital currency, difficult to trace, is also vulnerable to cyberattacks.” — Washington, Department of Financial Institutions
On the flipside of these arguments, these three sectors are some of the largest growing areas of business globally. All of them have added exponential amounts of startups and venture capital into the world economy. The Huffington Post agrees with the ArcView analysis saying that Cannabis is the fastest growing industry right now and seems to be gaining more steam daily. The iFXEXPO industry review reveals that binary options are a sizzling product in the market as well, and its growth has seen record levels. Brokers working in the industry are not concerned with the correlation to gambling as they focus on optimal trading.
Bitcoin and blockchain technology has seen renewed interest this year in 2015. The year was celebrated as the industry had a record 1 Billion in venture capital investments. The value of the digital asset had also climbed from 2014’s slump and the price gained considerably during the beginning of the fall months. Mainstream media has been positive towards the currency and its technology giving added trust to newcomers joining the network.
The three investments the U.S. officials are concerned with happen to be the top industries in our economy that have little-centralized control. It is to be expected that they are concerned with the amount of wealth that is not funneling through their regulatory committees. When revenue increases for the bureaucrats pockets most likely, the opinions will change as it seems most of these officials just want their cut.
What do you think of the Cannabis economy, Binary Options, and Bitcoin? Are they dangerous? Let us know in the comments below.
Images courtesy of Redmemes and Shutterstock
Jamie Redman is a crypto writer and a dragon on Tuesdays. Follow me on twitter @jamiecrypto
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