05 Feb Cryptocurrencies: Why Analysts Suggest Holding Off Until Complete Stabilization
Over the last couple of weeks, and weighed down by regulatory concerns, cryptocurrency prices have declined. Now, major analysts warn investors from cryptocurrency trading.
Source Image: coinmarketcap.com
Financial Institutions Hate Cryptocurrencies
Currency trends expert Chris Verrone said “the crash signaled that the financial sector is not prepared to own bitcoin yet and investors should wait to plunge into the crypto market until prices stabilize.
Previously, using the World Economic Forum (WEF), global financial institutions have strongly criticized cryptocurrencies. The majority of institutions raised their concerns over the underlying value of cryptocurrency prices, the huge price swings and the illegal use of the currency.
Adding fuel to fire, the governor of Bank of Canada believes that bitcoin is not an asset and is only a speculative investment considering it has no intrinsic value.
Nobel Prize-winning economist Robert Shiller said, “It may be around for 100 years, though it’s more likely to collapse.”
But They Love Innovative Blockchain Technologies
However, banks and analysts are admiring the innovative blockchain technologies. The financial sector holds the majority share when it comes to investment in blockchain technologies.
In early 2016, the International Monetary Fund announced that distributed ledgers had the potential to offer faster and cheaper financial services.
Since 2015, the Bank of America (NYSE:BAC) has filed for 43 blockchain patents. Several payment services companies are also investing heavily in blockchain technologies. Stripe, MoneyGram (NASDAQ:MGI) and others are looking to enjoy the instant movement of money with the help of blockchain technologies.
Wait Until Regulatory Concerns Set the Price
Prices are declining sharply due to regulatory concerns. Major countries all around the world are implementing rules for cryptocurrency trading; China has completely banned all sorts of cryptocurrency platforms, India has announced it will take firm action against virtual currencies and South Korea has banned trading from anonymous accounts. Meanwhile, the U.S. and the U.K. are planning to make regulatory requirements to avoid the illegal use of cryptocurrencies.
Unfavorable news from all around the globe continues to hit Bitcoin and other cryptocurrencies prices. Overall, the current trend is negative and cryptocurrencies are down 60 percent from the highs. Analysts warn against it and to adopt a ‘wait and see’ strategy. But what do you think? Comment below.
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