Deutsche Bank warns against investment in bitcoin: the causes

Deutsche Bank warns against investment in bitcoin: the causes

Deutsche Bank joined those who advised not to consider bitcoin as a good investment.

In particular, the chief strategist of Deutsche Bank Stefan Ulrich has admitted that he would not recommend such an investment to investors daily. This writes Reuters, adding that Stefan explained his position by the fact that fluctuations in bitcoin’s too big and too little regulation. At the same time, he pointed out that German investors are not very willing to invest money in securities, but generate buzz around cryptocurrencies.

The newspaper reminds that the value of bitcoin broke the mark of 8 thousand dollars this past weekend. Today the cryptocurrency sold for $ 8216. Experts also expect that it can rise to 10 thousand.

The incredible growth in the vulnerable price of bitcoin has caused many warnings about a bubble, and international investors mostly staying away from bitcoin.

Small investors and some hedge funds, are increasingly investing in virtual currency, despite the fact that the Executive Director JPMorgan Chase & Co Jamie Dimon called it “a Scam”.

Also head of UBS Alex Weber advised caution with investing in bitcoin. However, he noted that the technologies that underpin cryptocurrencies have a huge potential. Sweden’s Central Bank, meanwhile, has become one of the organizations that see the potential in investing in the electronic currency.

“E-krona has the potential to solve problems that may arise on the payment market in the future due to the reduction of use of cash”, – reported in the Riksbank.

Recall that from 7 to 13 November Bitcoin fell by almost 30%.Only the previous weekend, the rate decreased by 10%.

The blockchain of Bitcoin to 1 August were separated into two circuits (hard forks), this resulted in two currencies – the “classic” Bitcoin (Ticker symbol BTC) and the new Bitcoin Cash (tickers BCC or BCH).

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