Cryptocurrencies and financial history: some reflections...

On January 30, 2018, I presented some reflections linking relevant events from financial history to the current cryptocurrency debate. Below, you can have a look at the 9 minmute footage from the crypto-day event here in the RAI.

During my 9 minute conversation with Vincent Everts, I aimed at sharing the following observations
- understand that the development of shares and securities regulation both have an evolutionary character,
- regulation of share issuances has for important parts also originated from self-regulatory structures,
- the tulipomania hype really fueled when forwards and futures become possible (a bit like the price hike in december 2017)
- when the mood is right, people will buy any shares, without due diligence on the nature of the security or cryptocurrency they will be biuying
- each burst in the bubble can lead to angry private investors, who will line up to smash or criticize the institutional context which 'allowed' them to get burnt,
- remember that the early forms of cryptocurrency date from the 1980s with a.o. Digicash taking the lead
- also in the regulated IPO world, accidents and fake news may distort the view for the public,
- don't underestimate the greed of the general public (who may be willing to take quite some extra risk to get an added revenue on their savings, when in a low interest rate environment),
- the issue of a 'fed-coin' is back on the table again, but now in an environment where we are used to having banks around (although those are a relative latecomer to the financial history party),
- regulators are now issuing warnings and some further consumer protection regulation in this area may be around the corner.