Tasmanian Government Must Issue Urgent Bitcoin Warning

The Tasmanian Government needs to issue an immediate warning to Tasmanians who are thinking of purchasing Bitcoin.

The digital currency has rallied at phenomenal speed on the global market, surging past US$17,000, despite having no intrinsic value. While investors and speculators are pouring money into Bitcoin in the hope of getting rich, the current bonanza cannot last.

The crypto currency is creating a buying frenzy among eager speculators around the world. There are stories of people pouring their life savings into Bitcoin, betting on its continued rise. This has seen Bitcoin soar by over 1500 per cent this year, and climbing thousands of dollars in the last couple of hours alone.

There will be Tasmanian mum and dad investors thinking about catching the Bitcoin wave and putting their money into this crypto-currency. The Tasmanian Government has a role to warn people about the high risk of being caught with huge losses when the bubble bursts.

The current Bitcoin rush is on a scale that leaves the dotcom and housing bubbles in the shade. Nothing like it has been seen since the tulip ‘bubble’ of 1637, where fashionable tulip bulbs reached extraordinarily high levels before dramatically crashing, causing serious financial pain to those caught up in the buying frenzy.

Leading economists are now issuing dire warnings about Bitcoin, including Nobel Prize winner Joseph Stiglitz who has called for the currency to be outlawed.

Bitcoin isn’t widely accepted as a currency and no government stands behind it. It is not even physically attractive, as paintings, gold and tulips are. As of today, the sole legitimate reason to buy bitcoin is to sell it later for a higher price.

The State Government has a duty of care to ensure all Tasmanians are informed of the incredibly high risks of investing in Bitcoin, including likely losing everything. A warning must be released as a matter of priority, with Bitcoin mania growing by the hour.
Rosalie Woodruff MP | Greens’ Consumer Protection spokesperson