Cryptocurrencies such as bitcoin are just a ‘farce.’ These are the symptoms of bubbles that are forming in the financial market. This is exactly what Amundi’s Chief Investment Officer, Pascal Blaque, said on Thursday.
Bitcoin is currently trading near the mark of $39364. It had fallen by 35% in the last month. This took place as China doubled down on its efforts of preventing speculative and financial risks by making a crackdown on the mining and trading of bitcoin.
Speaking in a news conference, Blaque described cryptocurrency coins as a “farce.” He also added that it was a kind of symptom of bubbles, which are forming currently in the market.
According to him, bitcoin will come up in discussions as it has helped in pushing the central banks to adopt digital money. As per him, the governments and regulators will ultimately opt to “stop the music.”
Here is what he exactly said:
“Bitcoin will be remembered for pushing central banks to adopt digital money.”
Blaque also said that it was more important for the investors to increase their exposure for the renminbi and China’s currency before diversifying into cryptos.
Earlier this week, a new whale account woke up after nine years. It could offer a much valuable lesson regarding the investment into cryptocurrency.
The account held more than 900 bitcoins when the account went dormant in 2012. It is now active. It is quite impossible to ascertain what has made the owner of the account come out of hibernation. Also, there are chances of the account to face a hack or access from someone else. But for those who are getting worried about the potential losses in the short term since the market has crashed, this incident shows why holding your investment in the long term is uncertain. It can reap some of the unfathomable gains.