The year 2017 has yielded dozens of warnings from banks telling people not to buy bitcoin. Not surprisingly, these warnings fall on deaf ears more often than not. Banks should never tell a consumer how to use or control their own money, Bitcoin and cryptocurrencies yield high returns and the party is only just getting started. Deutsche Bank chief strategist Ulrich Stephan feels Bitcoin is still too risky for the everyday investor.
It is remarkable to see Deutsche Bank staffers talk about Bitcoin. They work for one of the banks which will herald a global demise of the financial sector as we know it. When that will happen will mainly depend on consumers As long as they keep faith and money in this bank, the situation will remain at a status quo. At the same time, the bank’s chief strategist feels Bitcoin is only designed for accredited investors. The everyday person on the street is better off taking financial advice from Deutsche Bank or any other financial institution.
Deutsche Bank Chief Strategist Shouldn’t be Trusted
Such a patronizing attitude by the Deutsche Bank chief strategist will not be appreciated by most people. Consumers can make their own decisions just fine. It is true how investing in Bitcoin is a big risk. So is investing in bonds, stocks, or any vehicle your bank may recommend. With Bitcoin, you can get it and get out whenever you want. That is very different from most traditional investment vehicles today. Moreover, the consumer is in full control of their investment at all time. Otherwise, the money is held in custody by a bank or third-party service provider.
Price fluctuations and lack of regulation are two of Bitcoin’s selling points as an investment vehicle. While Deutsche Bank may not like this one bit, they are also scared of the competition. Consumers and institutional investors demand exposure to cryptocurrencies. This takes money away from banks such as this one, which is something they simply cannot allow. It will certainly be interesting to see how this situation will play out in the years to come.
No one should take any recommendation on Bitcoin or other types of investments. People need to do their own research and take matters into their own hands. Deutsche Bank and consorts will always oppose Bitcoin, as it is direct competition to their business model. Statements like the one by Ulrich Stephan mean absolutely nothing. Just like any promise made by any bank regarding how they keep your money safe. Books are good for making idle promises, but not for much else. Bitcoin is here to stay but always do your own research before taking the plunge.
Header image courtesy of Shutterstock
