Liability for Unreliable Cryptocurrency Predictions

Abstract

Cryptocurrencies have entered the economy as alternative money, as speculation objects, and as utility tokens for innovative service-platforms. Predictions are numerous. While some predict that their value will skyrocket, others predict their collapse. Some predict them to completely transform traditional finance, while others predict that they will become insignificant. This paper addresses the reliability of cryptocurrency predictions. It is found that many predictions are far from reliable, and that unreliable predictions may cause harm. Legal liability for unreliable cryptocurrency predictions is explored, with a particular emphasis on pundit predictions. Regulatory implications are also discussed.

Keywords: Blockchain, Cryptocurrencies, Forecasting, Predictions, Regulation

JEL Classification: G17, G18, K13, K22