by Blaine Howerton | NorthFortyNews.com
As digital currencies continue to spark headlines — and controversy — a Colorado State University finance expert is urging caution for anyone considering investing in crypto.
Recently, Argentina’s president, Javier Milei, came under fire after promoting a cryptocurrency called $LIBRA that surged in value before crashing, leaving many investors in the red. Critics called it a classic pump-and-dump scheme — a stark reminder of the volatility and risk tied to digital currencies like Bitcoin and Ethereum.
About 17% of Americans have invested in cryptocurrency, according to the Pew Research Center. But CSU Associate Professor Hilla Skiba, from the Department of Finance, says that crypto should be viewed more as speculation than traditional investing.
Why Crypto Isn’t Your Typical Investment
“If you’re putting money into crypto, it’s more speculation than investing,” says Skiba. “Stocks are backed by a company’s value and performance. Crypto? It’s purely supply and demand — there’s no fundamental value behind it.”
She compares crypto to the rise of meme stocks like GameStop, where prices soar not because of company performance, but because of hype and mass buying behavior.
“When people buy crypto, they’re often hoping someone else will pay more for it later. That’s speculation, not investment,” Skiba said.
The Danger of the “Wild West” Market
Skiba emphasizes the risks of the largely unregulated crypto market. “It’s the Wild West,” she explains. “Scammers exist. Massive pools of money can manipulate trades. And because it’s anonymous, it’s hard to track bad actors.”
She warns that the lack of oversight makes it easy for seasoned manipulators to take advantage of inexperienced or first-time investors.
“If you hear of someone putting their life savings into crypto, that’s heartbreaking. They may not understand the risks,” she says.
Before You Buy, Ask the Right Questions
For Northern Colorado residents curious about dipping a toe into crypto, Skiba offers this advice: Do your homework, and don’t bet what you can’t afford to lose.
“People think mining costs or the tech behind the coin determine its value — they don’t,” she adds. “If I build a house for $2 million, it’s not worth that until someone’s willing to pay it. Crypto is the same.”
For more personal finance resources and local economic news, visit northfortynews.com.