Skeptics of bitcoin are as old as the cryptocurrency itself; now a strategist for Deutsche Bank is advising investors to stay clear of bitcoin as an investment due to its volatility and lack of regulation. Ulrich Stephan, the chief strategist at the German bank said, “I would simply not recommend this to the everyday investor.” The comment comes just days after bitcoin set a new all-time high record of $8,200.
The cryptocurrency has made massive strides this year with the value of one bitcoin going from around $1,000 up to $8,000; the year still has several weeks left and many are speculating the digital asset could reach $10,000 in the near future. In fact, it’s looking extremely likely with even loftier goals becoming more probable.
As Reuters points out, many institutional investors are broadly staying away from the nascent technology fearing that it could be a bubble, however, it appears to be fairly popular among the masses who are willing to experiment. Bitcoin allows you to invest as much or as little as you like because you can hold fractions of a bitcoin, this makes it financially accessible to most people.
There’s been a consensus among “the establishment” that while bitcoin itself may not last, the underlying technology is a very positive development that they believe they’ll be able to incorporate into future projects. One game-changing technology which Microsoft has shown interest in is a blockchain backed identity system which will mean people around the world won’t lose the ability to prove their identities.