Senior Executive Says Crypto Investors Could Lose Everything
Markus Mueller, Global Head of Chief Investment Office at Deutsche Bank Wealth Management, has stated that crypto investors could be subjecting themselves to a “realistic risk of total loss”. The experienced senior executive describes cryptocurrencies as “highly speculative”. He further adds that his organization does not recommend investing in the crypto-market. Furthermore, he asserts that in order for Deutsche to consider Bitcoin or other cryptos to be genuine, tradeable assets, there must be marked improvement in how they’re regulated, and their overall transparency and security.
Mr. Mueller also thinks that “liability” and “documentation” pertaining to cryptocurrencies is not clear at the moment. Although the senior executive does realize that the crypto-market is in its infancy, he believes that the long-term success of the crypto-world depends on how well it cooperates and works with the world’s regulatory authorities. He’s fully aware that many crypto-enthusiasts are not fond of regulations, however, he feels that they can help protect investors and traders from abuse and crime. He explains, “When security and trust are created, cryptocurrencies can be assessed like established asset classes. It is possible that the governance required will exist in five to ten years from now.”
World Leaders Want Proper Crypto Regulations
The German senior executive is not the only one who’s in favor of regulations. As reported earlier by Core Media, regulators in the Philippines also think it’s necessary to set up a regulatory framework around cryptocurrencies. According to Mr. Mueller, the crypto-market will stabilize within the next decade. As a result, most of the volatility and danger will be eliminated from the crypto-market, according to Mr. Mueller. At this point, the senior executive thinks it will be possible to effectively utilize crypto across various industries.
Luis Maria Linde, Governor of the Bank of Spain, has also stated that cryptos are very risky investments. Meanwhile, the Financial Planners Association in Austria has described Bitcoin investments as being similar to gambling at a casino. Also, Bernstein, Wall Street’s leading research and brokerage company, has said that crypto-technology has the potential to eventually become a “disruptive force” . Therefore, it “will have significant implications for investors. But, for now, at least, they do not have a direct role in asset allocation.“
Present State of the Crypto-World
Currently, cryptocurrencies, particularly bitcoin, have plenty of doubters and critics. A lot of folks do not think BTC will ever be a good method of payment or even a decent store of value. Then, you’ve got people like John McAfee, who’s known for creating the old school McAfee anti-virus program. He thinks Bitcoin will be so successful that just one bitcoin will be worth $1 million by 2020. Nevertheless, a significant number of people think that the blockchain technology that underpins cryptocurrencies has the potential to be used in numerous real-world applications.
So, even if people are not fans of cryptocurrencies, they are still interested in the blockchain. This is why some people believe that the revolutionary blockchain on which cryptos are exchanged will help them prevail and become mainstream. Personally, I think cryptocurrencies have great utility because you need not go through a bank, or any other intermediary, to conduct financial transactions. However, I do agree with Ethereum founder Vitalik Buterin when he says that crypto-technology must be improved greatly in order for it to be widely adopted. Once this happens though, we might witness a huge paradigm shift when it comes to how we think about and use “money”.