Charles Schwab Strategist Skeptical of Crypto — Puts Faith in Banking System, Federal Reserve – Featured Bitcoin News
Charles Schwab’s chief funding strategist says she places religion in the complete U.S. monetary system, the banking system, the facility of the central financial institution, and the Federal Reserve greater than bitcoin.
Charles Schwab’s Strategist Skeptical of Cryptocurrency
Charles Schwab Chief Investment Strategist Liz Ann Sonders shared her ideas on cryptocurrency and the U.S. monetary and banking techniques on a Yahoo Finance webinar final week.
The Wall Street strategist defined that she trusts the U.S. monetary system greater than she trusts cryptocurrency miners, stating:
I nonetheless put some religion in the complete U.S. monetary system, the banking system, all of its protections, in addition to the facility of the central financial institution, the Federal Reserve, to kind of management the fiat currency that can be the worldwide financial normal and the world’s reserve currency — versus, say, bitcoin miners.
Regarding cryptocurrency, she mentioned: “I am an admitted skeptic to some degree. I’m not on either end of the spectrum, meaning I’m a skeptic but I’m not [saying] this is complete nonsense.”
She defined that she has been asking one query for a very long time, “which is what problem is this solving for?” However, the strategist mentioned, “I have yet to get a very compelling answer.”
Commenting on utilizing bitcoin as an inflation hedge, she famous that the cryptocurrency has been round since 2009 however “the only burst of inflation that we’ve gotten since that period of time was during a three-month period where bitcoin was cut in half. So you sort of lose that argument.”
The strategist proceeded to boost issues about bitcoin’s “concentration,” which she considers a major menace. “The latest data that I’ve seen is the top 2% of bitcoin holders own somewhere between 90% and 95% of bitcoin. And then there’s leverage associated with a lot of this,” she described. The strategist cited “The implosion of Melvin Capital with Gamestop” and “The implosion of Archegos and stocks like CBS Viacom” as examples of what focus points might result in.
Noting that crypto might have “underestimated” threat elements, she opined:
I feel that thread of leverage and focus arguably can weave its manner by lots of these areas the place you’ve seen large quantity of hypothesis.
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