In recent months, bitcoin has attracted more and more institutional investors, but the chief strategist of Barclays Private Bank Gerald Moser said that the first cryptocurrency is very difficult to invest in.
In his interview, Gerald Moser emphasized that Bitcoin and other cryptocurrencies are very volatile, so investing in them is not a good idea. According to him, the average Wall Street investor is not overly fond of overly volatile assets, despite the huge potential for returns.
“It is almost impossible to predict the profitability of bitcoin, and its volatility makes it almost impossible to invest in this asset,” Moser said.
The chief strategist at Barclays has put cryptocurrencies alongside other high-risk assets like stocks or oil investments. However, he emphasized that bitcoin is more suitable for retail investors, and large financial institutions are better off investing in traditional assets:
“I think many will exclude cryptocurrencies from their portfolios at the next revision. The profitability of cryptocurrencies is associated with the inflow of funds from retail investors. This is not a very reliable basis for long-term growth. ”
At the same time, representatives of another UK-based investment firm, Ruffer, expect an increase in the institutional adoption of the first cryptocurrency in the coming years.
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