The uncertainty of cryptocurrency
Trading and investing in cryptocurrencies have become a lifestyle for some Jamaicans. Though the Bank of Jamaica (BOJ), in a notice released in July 2021, cautioned this means of digital investing and trading, many persist with this mode of financing.
The notice read, “Cryptocurrencies are digital currencies that are not issued or guaranteed by a central bank or a monetary authority. In addition, cryptocurrencies are not legal tender in Jamaica. Bank of Jamaica does not regulate or supervise these forms of digital currencies… The public should be mindful that individuals engaged in the use of cryptocurrencies are doing so at their own risk and are urged to conduct appropriate due diligence.”
Economist, Dr Andre Haughton, noted that the trend is becoming increasingly popular worldwide and that while normal money is regulated, cryptocurrency is unregulated and built on a blockchain platform, thus, exposed to more risks.
While Denville Denver (not his real name), a crypto trader and investor for four years, agreed that there are risks and admitted to losing a significant amount, this did not deter him from using cryptocurrencies.
“The beauty about cryptocurrencies is, once you make a mistake, you never make it again, it’s like boot camp. So, yes, losses are a part of it, but that does not make it any less of a rewarding experience once you get it right,” he said.
Cryptocurrencies, for Denver, has been a response to inflation. He said “Crypto is a lifestyle for me. I have not used my personal bank account in the last three years. I don’t need it. Every dollar that I spend, is made straight out of cryptocurrencies. Crypto gives you freedom!”
Padena Noelle (not her real name), a crypto user for seven years has also lost money trading. “It’s a learning curve and it takes time to learn to trade properly, but I have never lost investing because I make sure to do my research and put my money with legitimate businesses,” she said. She also said that she was not able to use her digital currencies in Jamaica, but she is a daily investor in Bitcoin, Dutch coin, Shiba Inu coin, Cardano among several others.
Kalilah Reynolds, in her Business News YouTube series on 26 October 2021, noted that “A lot of people who have been trying to invest in cryptocurrency have found all types of hurdles in trying to get there, in trying to fund their wallet, in trying to cash out. Some local banks have blocked the transactions. There have been some savvy investors who’ve found some work arounds, some platforms that allow it, but there is still largely a difficulty. It’s not as easy as one would like to be able to trade cryptocurrency here in Jamaica.”
She also presented data from Coinbase.com, pointing to the surge in value of the popular digital currency, Bitcoin. The US$66,000.00 record in value was linked to the bitcoin exchange trading fund (ETF), launched last week.
For Noelle, this surge was good for her portfolio’s value. “I usually sell a portion of my bitcoin when it reaches a new all-time high and wait to buy back in, after a 50 percent retracement, thus, increasing my number of coins,” she said.
For Rebecca Miller however, the process has not at all been rewarding. A hacker messaged her online through her friend’s Instagram account about the wonders of cryptocurrencies and she gave up her bank details. She said they were unsuccessful, but they hacked her Instagram account targeting her followers. “I strongly believe that without knowledge, cryptocurrency can be a very dangerous thing!” she said.
