“If the Crypto Bubble Bursts, No One Will Come for Compensation,” Consob Commissioner

Consob Commissioner Federico Cornelli issued a warning about the speculative nature of cryptocurrencies at the opening of a conference held today in Rome. Speaking at the Consob headquarters during the event titled “Italian Investors: Choices Between Advice and Sustainability.”

The warning comes amid a record surge in Bitcoin prices, fuelling speculation among enthusiasts that the cryptocurrency could soon surpass $100,000.

Crypto Bubble Could Leave Investors Unprotected

Cornelli highlighted the absence of intrinsic value in cryptocurrencies like Bitcoin. He warned that if the market collapses, investors will have no way to seek compensation from authorities or governments.

Cornelli commented: “Bitcoins and other cryptocurrencies are highly speculative instruments. Underneath there is nothing. There is no debtor. If the bubble ever bursts one day, no one will come asking the Authorities or governments for compensation.”

Social Media Leads Investment Decisions

The conference coincided with the release of two studies by Consob: the Report on Financial Investments of Italian Households and the Report on the Advisor-Client Relationship. The findings highlighted a significant shift in investment patterns and information sources among Italians.

One report revealed that between 2022 and 2023, the percentage of Italian investors holding cryptocurrencies more than doubled, rising from 8% to 18%. However, the increase in adoption is not always supported by adequate knowledge of the risks involved in these digital assets.

The study also noted a change in how investors obtain information. Social media has become the most popular source, with 36% of respondents relying on platforms like Facebook and Instagram, surpassing the 34% who still turn to traditional print media.

This trend raises concerns, as social media is a key source for younger individuals, women, and those with lower financial literacy or fewer assets—groups identified as particularly vulnerable to high-risk investments.

Financial Education Crucial for Future

Consob and other regulatory authorities have repeatedly warned of the dangers associated with cryptocurrency investments, emphasizing the potential for total capital loss.

Closing the event, Consob Secretary General Nadia Linciano stressed the importance of financial education. “For the future, given the crucial role of financial education, we need to make a greater effort to strengthen and expand the channels through which we convey our content, in order to reach an increasingly wide audience,” she said.