Deutsche Bank warns against investing in cryptocurrency – Markets react

In an Interview with Bloomberg, the Chief Investment Office Head of Deutsche Bank, Markus Mueller expressed his views and thoughts on the future of cryptocurrencies. He says,

“Cryptocurrencies have a lot of problems like they are not regulated, they don’t have an institution backing their value and there’s no security and volatility.”

He believes that the recent increase in the price can be attributed to the wild imagination of people and that things change in an instant.

Muller is not the only renowned financial expert to stand against cryptocurrencies. The list is long which also includes the Luis Maria Linde, Governor of Bank of Spain, who says

“Cryptocurrencies are an asset that carries enormous risks.”

Even the Austria’s Financial Planners who compared Bitcoin Investments with a “Casino Visit” share the same feeling as Luis Marina.

According to Mueller, a more stabilized system with tight security should come in place to keep the investors a little safe especially after the latest hack of Japan’s largest exchange which shows how unsecured the current market is. He feels that offline trading can improve the situation to some extent.

The latest majority hack of the exchanges has led cryptocurrencies to self-regulate themselves which will help to increase the stability and trust in people and investors.

As soon as this news broke out, there was a backlash from the cryptocurrency markets.

Phasok Vashum, a cryptocurrency investor from Nagaland, says,

“For how long will the banks and governments try to control the prices with negative news? The hack that happened in the Japanese exchange is not affecting the investors as they would be getting a refund. Hacks are like robberies, you won’t stop keeping your money in a bank just because some bank in the corner of the world got robbed”

Paul Johnson, a Financial Advisor from London, says,

“If you try to critique every point that Markus made, you realize that there is no substantial value in what he said. Leading from South Korea, a lot of exchanges around the world will start to self-regulate and once that happens, the apparent fear of ‘money laundering’ will go away”

Gilbert Goldman, an Investment Advisor at a Cryptocurrency Fund Managing company in California, says,

Yes, there is “risk” but no one can say there is no “value”. This is the future and I tell my clients to invest in tokens which have a strong philosophical and technological backing”

Coupled with the end of “anonymous trading” ban in South Korea from today and cryptocurrency market criticism from influential people around the world the cryptocurrency markets witnessed a 15% slump since yesterday, with Bitcoin at 01:41 UTC trading under $10K at $9500.

https://ambcrypto.com/deutsche-bank-warns-investing-cryptocurrency-markets-react/