Despite having a market slowdown in the Crypto World, there has been a huge increase in the prices of cryptocurrencies, especially bitcoin. Is it because of people realizing the potential of cryptocurrencies or is it because people losing faith in traditional financial institutions ?
Experts Pointing Out the Loss of Faith
Michael Hartnett, Chief Investment Strategist of Bank of America shows concern over rising of cryptocurrencies. He told that cryptocurrencies have always been a safe haven for those who seek more interests through trading. Also, he expresses the loss of interests of the general public over traditional government bonds and other schemes which provide interests but not to the satisfaction of the customer or corporation. People are gravitating towards “High risk, High reward” investments due to loss of faith in financial institutions.
This claim is backed up by even big corporates investing in bitcoin. This shows the change in the attitude of people towards cryptocurrencies.
John Normand, an executive at JP Morgan, points out that it has to do with more of people losing trust in traditional financial institutions. JP Morgan has always been skeptical of cryptocurrencies having a strong foothold in the market, as expressed by John. But, people have started investing in these cryptocurrencies as they have lost faith in the Dollar, Euro and other forms of tangible currency.
John Normand’s concern over cryptocurrency is valid as being an executive of one of the forefront banks in the world would alarm him setting the change in behavior of the general public and even corporations. Also, he won’t as far as calling this behavior a “Dystopian Environment” for people to invest.
Cryptocurrency has been a great source for people to invest their money and not feel threatened by the vicious schemes of the corporate world. Yes, it is the wild west of money investment and scams and hacking happen every now and then. But, calling it a Dystopian form of investment would be an oversight as it is still in its initial stages and Bank executives often do that to put Crypto in a bad light. But, the same was said for the internet and now it has become an inevitable part of human life. What will Crypto bring a Dystopia or a Utopia only time will tell.