UBS, one of the world’s top investment bank and financial advisor have diminishing belief in the cryptocurrencies. Their strategists warned the new investors that they may lose all their money being invested in the cryptocurrency. The current rally is attracting more and more amateurs to join in the crypto trade. The strategists said that such investors are not aware of what is at risk here.
UBS Global Wealth Management believe that the governments’ regulatory attempts may wipeout the decentralized cryptocurrencies eventually. They said there is also new competition in the market backed by the central banks which would seem like a better option to many considering their volatility and foundation.
As the big institutions at Wall Street gained interest in Bitcoin, it may surge exponentially in the short run. But UBS believes in the long run, the crypto industry will face vanishing risks.
Michael Bolliger, Investment Advisor, said nothing can stop the prices of cryptocurrencies from going down to zero. A cryptocurrency of a newer generation may supersede the current digital currencies he said in a report on Thursday.The strategists at the Swiss firm said that Myspace and Netscape are examples of such applications that gradually disappeared.
Bitcoin falling below $35,000 once again has ignited the debate once more among the world’s biggest investors and brokers. Big names like Paul Tudor and Stan Druckenmiller of the investment world are entering the crypto trade world. While investors see it as an achievement, the critics suggest gambling and manipulation.
UK recently banned sale of few crypto similar products to retail investors. Strategists quoted the ban in UK to substantiate their claim that eventually crypto world would succumb to the regulations.
The crypto has established its status as a profitable trading entity. Yet like many other firms, UBS has its reservations about accepting cryptocurrencies as real-world currencies. They stay true to their statement that cryptocurrency is a bubble as determining its fair value is quite impossible.
On the contrary, some investors have shown high hopes for Bitcoin by saying nothing can stop it from rising. Some investors claim to have sold their gold and started buying Bitcoin as a reserve of their money.