The Risks

The value of cryptocurrency is highly volatile compared to traditional fiat currency . A cryptocurrency ’ s value is largely based on its supply ( how much is in circulation ), its level of acceptance by vendors and the public , and the amount of investor speculation surrounding it . However , there is no guarantee that a cryptocurrency investment will become more valuable over time , especially if you ’ ve invested in alt currencies , which may become increasingly obscure as the crypto landscape evolves .

Scams and criminal activity are also rampant within the cryptocurrency space , with many hackers and scammers attempting to separate users from their digital wallets . Transactions are irreversible , and there are no banks to appeal to in case of fraud .

There is also the environmental impact . While fiat currencies may sit in vaults , cash registers , or under the couch cushions , cryptocurrencies live on the web and require a huge amount of electricity to maintain . A UN study last year found that , were

Bitcoin a nation , it would have ranked twentyseventh in terms of energy consumption during 2020 and 2021 , using the equivalent of 84 billion pounds of coal .

While it ’ s true some people have gained tremendous wealth through crypto investment , many more have been victims of fraud , volatile markets , and lost passwords . A lot of luck is involved , and constant vigilance is needed . You should speak with your financial advisor before moving into any new investment strategy , and cryptocurrency is no different . Take your time , do your research , and know the risks before you invest .

Ray Hoger has written articles for news & views as a member of ARTA ’ s Pension and Financial Wellness Committee . He has moved on from P & FW to a position on ARTA ’ s executive ( see p . 11 ).

Ray reminds readers that he is a retired teacher with an interest in financial matters . Always speak to a professional financial advisor before making significant financial decisions .

Pension information statements and tax slips will be available soon .

Sign in to ATRF ’ s secure member portal , MyPension , to ensure your contact information is current so you never miss an update .

Alberta Teachers ’ Retirement Fund

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