Amundi CIO Pascal Blanque stated on Thursday calls cryptocurrencies like Bitcoin are a ‘farce’ and a symptom of financial market bubbles.
What Were The Causes Of Bitcoin’s Drop Last Month?
This dip was triggered by a mix of causes, including excitement for low-quality coins, harsh words from Elon Musk, and China’s recent crackdown on crypto services. This sell-off became ‘all the more violent as a result of the accumulated response.
Comparison between the decline to the 1987 stock market crisis, which took months to recover from. However, because cryptocurrency moves far faster than equities did in the 1980s.
Why Amundi CIO Calls Bitcoin A ‘Farce’?
Blanque branded cryptocurrency as a ‘farce’ at a news conference, adding that it was a symptom of market bubbles.
“Bitcoin will be recognized for pushing central banks to adopt digital money,” he said, adding that governments and regulators will eventually “turn off the music.”
In response to a comment request, an Amundi spokesman stated, “As of now, cryptocurrencies (CCs) cannot be called a form of money because they are neither a proven store of value nor a recognized unit of account, let alone a universal means of payment.”
“There is no valuation methodology for CCs because there is no real economic underlying asset,” according to the research.
“A fully decentralized and disintermediated CC system could pave the way for the establishment of global payment networks that are faster, cheaper, and more inclusive than current payment systems.”
Before diversifying into cryptocurrencies, investors should increase their exposure to the yuan, China’s currency, according to Blanque.