Cryptocurrency users have no love lost for financial institutions. This is especially true when it comes to Deutsche Bank, which is considered by many to be “too big to fail”. It now seems the bank’s Wealth Management arm is advising users not to invest in any cryptocurrency, especially not in Bitcoin. There are a lot of issues associated with these markets, including the high volatility, price manipulation, and even data theft. It’s a very interesting development, even though it remains to be seen if people will pay any attention to this warning.
DEUTSCHE BANK STILL DOESN’T LIKE BITCOIN
For as long as Bitcoin has existed, banks and different monetary service suppliers have suggested against shopping for any cryptocurrency. those who followed that recommendation to a fault have left out on a number of the most effective investment opportunities of the past decade. Even so, the markets area unit still susceptible to manipulation, speculation, and volatility. These area unit all terribly problematic aspects as way as Deutsche Bank’s Wealth Management arm is bothered. In a way, it's not stunning that they are doing not like Bitcoin or similar currencies within the slightest.
Deutsche Bank Wealth Management presently doesn't “recommend shoppers invest in Bitcoin or similar currencies”. Instead, they see this market as one thing solely speculative investors ought to listen to. whereas that's a remarkable train of thought, any sort of investment is often speculative 1st and foremost. nobody makes associate degree investment to retain their current worth, as everybody hopes to induce extra money out of it as time progresses.
Moreover, the Wealth Management arm of Deutsche Bank is warning investors that purchasing Bitcoin might lead to a “total loss”. it's true the Bitcoin worth might hit $0 as simply because it might reach $100,000. transportation down this market are pretty tough, though, particularly considering that regulation has had no real impact. Even once associate degree exchange is hacked, the markets shrug it off with none drawback. Pushing the Bitcoin worth right down to zero isn't not possible, however it looks extremely unlikely at this time.
It is neither the primary nor the last time monetary “experts” have warned against the employment of cryptocurrencies, though. this whole market has been fueled by speculation and plug for as long as individuals will bear in mind. This doesn't simply apply to cryptocurrencies, albeit it's way more apparent during this specific trade as of without delay. nobody will deny there's plenty of risk related to cryptocurrencies from associate degree investment purpose of read. Even so, larger risks usually lead to larger rewards. It’s not onerous to check why such a large amount of individuals area unit smitten with Bitcoin and similar currencies.
The most recent Bitcoin worth fluctuations solely ensure the statement by Deutsche Bank’s Wealth Management arm. After all, we tend to saw the Bitcoin worth rise to just about US$20,000 and quickly drop to US$10,000 within the weeks later. This doesn’t mean the Bitcoin worth won’t rise to US$20,000 or additional once more within the future, though. For now, it's evident there's many manipulation and volatility within the markets. The lower cost is a wonderful worth for brand new investors, though, because it is unlikely the value can go abundant lower at this time.
Last however not least, Deutsche Bank’s Wealth Management spokespeople wish to state that ancient cash is backed by the underlying economic power of a rustic. that's a remarkable, albeit incorrect statement. there's virtually nothing backing the worth of decree currency in most countries without delay. paper currency and coins represent a promise created by the country’s financial institution to honor the worth of that bill or coin. Nothing prevents the govt from breaking this promise within the future. Bitcoin and different cryptocurrencies don't seem to be regular cash, however that doesn’t have to be compelled to be a foul factor.
source links
https://themerkle.com/deutsche-banks-wealth-management-arm-advises-against-buying-bitcoin/
its good hear a bank talk negative about crypto and bitcoin
you are right my dear @miguelalonso1, Thanks