Last week, CNN featured an article about a hamster that has made it big on Reddit and Twitch. The hamster, Mr. Goxx, made decisions based on which cryptocurrency his wheel landed on. Subsequently, whether the hamster ran through the buy or sell tunnel determined the action regarding the previously selected cryptocurrency.
According to the hamster’s human, the pet’s portfolio was up over 16% since June. In the same time period, Bitcoin was up by 14% and the S&P 500 was up 5%. It’s worth noting that Berkshire Hathaway B shares are down 2% over the same period of time.
“This is something we shouldn’t have to say. It really isn’t. But, it probably isn’t a great idea to get your investment advice from your pets’ habits, regardless of what tunnels they explore,” remarked Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges. “On the one hand, it’s clear that it’s in the news because of its rarity and absurdity. On the other, it isn’t clear to everybody. In fact, those who probably can least afford the losses are the most likely to give their pets a shot at playing financial advisor.”
“The real problem with this article, though, is that it again paints cryptocurrency investors in a negative light. Sure, the hamster was only playing around with a few hundred euros, not make or break for most investors. But, cryptocurrency has been constantly harangued by regulators and commentators as something with no value that shouldn’t be considered an investment for serious investors. Shenanigans like these only reinforce that myth,” said Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“That, in fact, is poppycock. Value is assigned by whether or not somebody is willing to pay for it. Many of those who say that cryptocurrency is worthless and valueless – well, one Bitcoin is worth more than many of them paid for their child’s wedding. That’s an awful lot of value for something that’s worthless. It’s nonsense. Cryptocurrency has value, and it will continue to have value. It’s unfortunate that these PR spectacles continue to plague the segment’s legitimacy among some in the mainstream,” opined Gardner.