Financial advisors appear to be siding with Warren Buffett and are saying that investors shouldn’t be putting their hard-earned money into bitcoin.
In a report from CNBC, Buffett has voiced his opinion about the cryptocurrency market, claiming that the craze with it won’t end well. Not shy to express his feelings, the chair of the multinational conglomerate said:
In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.
However, Buffett is not the only one to express this view. According to Ron Carson, founder and CEO of Carson Wealth Management Group, bitcoin and the digital currency market is the ‘wild, wild west,’ adding that:
Trying to pick a cryptocurrency today is a fool’s game. Unless you’re in gambling mode, I wouldn’t put any money into cryptocurrency right now.
Whereas, Cathy Curtis, founder and owner of Curtis Financial Planning, and Carolyn McClanahan, founder and director of financial planning at Life Planning Partners, are seeing a rise in the number of people questioning the possibility of investing in bitcoin.
Curtis explained that it seems to be a ‘generational thing,’ adding that:
Right now I’m saying, ‘If you want to dabble in it, go ahead. But I don’t see the value in it.
Whereas, while McClanahan is advising people to invest in cryptocurrencies ‘for fun,’ she states that the boat has sailed for big returns on investments. Many, however, do see the potential in the blockchain.
These remarks come at a time when the digital currency market is experiencing heightened interest from traders. Keen to get on board many may be seeing the recent market downturn as the perfect opportunity to buy while prices are low. Last week, amid increasing regulatory pressure, a planned cryptocurrency advertisement ban from Google, and a major bitcoin selloff, bitcoin fell to $7,800 while ethereum had dropped to below $600.
Trading Monday has seen market values rally in price after the Financial Stability Board (FSB), the financial watchdog for the G20 nations, said that cryptocurrencies don’t pose a risk to the global financial market.
Yet, while prices are low for the market, that’s not to say they’ll stay that way for long. Many are projecting positive returns for cryptocurrencies with one analyst of the opinion that bitcoin could hit $100,000 in 2018.
Kay Van Petersen, the Saxo Bank analyst who rightly predicted that the digital currency would hit $2,000 in 2017, has made another bullish prediction for it. In his opinion it could hit between $50,000 and $100,000 this year.
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