‘Fear of the unknown’ is holding crypto trade investors back – Bloomberg analyst
Jamie Coutts, a crypto market analyst for Bloomberg Intelligence, says “lies” and “fear of the unknown” are what have kept traditional money managers from investing in cryptocurrency.
Speaking to Cointelegraph at the Australian Crypto Convention over the weekend, Coutts claims there has been a continuous “fake” that “there is no intrinsic value in blockchains.”
“These asset managers own stocks, like Amazon and Facebook […] which for the first few years these companies had no profit,” Coutts explained, adding that Facebook in its early days “didn’t have a profit. […] or considered to have intrinsic value.
“Yet they could understand that there is network value here, that the network grows, that the value of the asset comes from the number of people who use the products.”
Coutts believes that “while not all blockchains are cash-generating assets, including Ethereum,” there is certainly intrinsic value there.
However, the Bloomberg analyst said he couldn’t quite understand why there was hesitancy to embrace cryptocurrency, ruling out lack of regulation as the reason.
“Regulation cannot be one. Let me rephrase that. Regulation is always a concern, but BTC is regulated.
Coutts said “there really isn’t a regulatory risk” because crypto became regulated “at the time when” it became a taxable item that you had to “disclose to the tax authorities in the jurisdiction you are in. “.
Instead, Coutts said it could be “just the fear of the unknown,” adding that asset managers ignoring or choosing not to learn about cryptocurrency is a missed opportunity.
Coutts suggested that those hesitant to invest in cryptocurrency should look beyond market volatility and focus on what cryptocurrency actually brings to the table.
“The best thing we can do is understand the global trends that are unfolding […] debasement and technological innovation, of which crypto is at the intersection. This provides the wind behind the sails of crypto as an asset class that should be considered for allocation.
Last month, the Swiss wealth management group Picket group informed against crypto investments “amid recent industry turmoil.”
Picket Group CEO Tee Fong has acknowledged that crypto is “an asset class that we can’t ignore,” but doesn’t think there’s “a place for private bankers and for cryptocurrency wallets.” private banks”.
Related: Does the Ethereum merger offer a new destination for institutional investors?
Others suggest that institutional investors remain interested in crypto-related investments despite market conditions.
Apollo Capital Chief Investment Officer Henrik Anderson told Cointelegraph on Sept. 14 that while institutional interest has been slow to gather momentum, there are plenty waiting on the sidelines, timing the market.
Anderson is optimistic about the future given that we have already “seen several of the big banks here in Australia taking an interest in digital assets”, with “ANZ and NAB” choosing to focus on “stablecoins and tokenization of digital assets”. traditional assets rather than crypto investments”. More precisely.”