The New York Attorney General, Letitia James, has issued a warning to investors about “risky cryptocurrency investments,” emphasising the volatile nature of the assets.
While New York continues to push for a ban on proof-of-work (PoW) crypto mining, the attorney general cautioned investors about the risks of investing in cryptocurrency.
Investors are “losing billions” in crypto, according to New York Attorney General Letitia James, who issued an investor advisory on Thursday. Even well-known digital assets sold on reputable exchanges might crash, according to James. As a result, the attorney general believes that crypto investments give investors “more anguish than gain.”
Apart from that, James advised New Yorkers to exercise extreme prudence while investing in cryptocurrency. Because of their volatility, the attorney general believes that these investments may end up being a source of anxiety rather than a source of wealth.
Announcement reminds investors of all the unregulated cryptocurrency
The published advisory also mentioned various problems that could deter investors, such as the market’s unpredictability, difficulties cashing out, high transaction charges, and the instability of some stablecoins. Investors were also reminded that many digital currencies are unregulated, according to the notice.
The warning came as the New York State Senate passed a bill prohibiting the practise of proof-of-work mining in the state. New mining operations will be outlawed if Governor Kathy Hochul signs the measure, and those who already have permits will not be allowed to renew them.
Meanwhile, KenGen, a Kenyan energy firm, has appealed to Bitcoin (BTC) miners to buy its extra renewable energy. According to a company representative, there is plenty of room in the country for miners, and they are happy to welcome them.
BTC mining revenue is also on the decline as the bear market persists. As the crypto winter deepens, Bitcoin (BTC) mining revenue and profitability have continued to fall in lockstep with the asset’s price. At the time of press, Bitcoin (BTC) was priced at $29,462.79 with a daily drop of 2.51% according to coin market cap.