Experts from one of the largest investment companies UBS Wealth are confident that cryptocurrency rates in the long term may drop to zero under pressure from regulators.
The strategists of the investment company UBS Wealth are confident that in the long term the price of the cryptocurrency can roll back to zero, so they recommend that novice investors be careful about investing in bitcoin and other digital coins. Experts say that the main reason for the possible collapse of cryptocurrencies is the strict regulation of the market, which will ultimately create unbearable conditions for the circulation of digital assets.
The authorities of many countries are tightening the turnover of stablecoins, which in the future may become real competition for fiat money. To prevent the collapse of public financial systems, governments are introducing measures to prevent the spread of cryptoassets. The UK, for example, wants to impose tight oversight on stablecoin issuers and related service firms. Non-fiat stablecoins will be prohibited.
The US authorities plan to implement a similar initiative. The working group on financial regulation under the Ministry of Finance has proposed tightening control over the circulation of stablecoins, citing the fact that these coins may pose a threat to monetary stability.
Bitcoin will follow the fate of Netscape and MyspaceIt is likely that a similar fate will await other cryptocurrencies. As soon as they create a real threat to fiat money, they will immediately fall under the ban of the authorities.
They believe the industry will face the fate of Netscape and Myspace, applications that enjoyed widespread popularity but ultimately disappeared.
According to UBS Wealth experts, investing in cryptocurrencies can indeed bring quick profits, but investing all your funds in bitcoin and other coins is definitely not worth it. Market professionals urge novice investors to invest in multiple assets, including traditional instruments like stocks.
Bitcoin rate will continue to grow, but do not flatter yourselfDespite the pessimistic forecasts, UBS Wealth experts do not deny that the bitcoin rate will continue to grow in the near future. Several factors will contribute to this, including market sentiment, institutional money inflows and limited supply. However, this trend will not last long in the market, so you can make money on Bitcoin only in the next few years.
Investors and analysts predict that the price of bitcoin will rise to the level of $ 50 thousand. This idea was expressed by Anthony Trenchev, managing partner and co-founder of Nexo.
And Tom Lee, co-founder of Fundstrat Global Advisors, expects bitcoin to perform “even better than 2020” in 2021. The growth of cryptocurrency above previous highs is supported by people’s doubts about the status of the dollar. The current weakness in the US dollar is leading many people to believe that savings are best stored in digital assets. The expert believes that Bitcoin may rise to $ 90-100 thousand by the end of the year.
Other investors support similar forecasts. Scott Minerd of Guggenheim Investments said bitcoin could be worth around $ 400,000, while strategists at JPMorgan Chase & Co see $ 146,000 in the long term.