Charles Schwab’s chief funding strategist says she places religion in all the U.S. monetary system, the banking system, the ability of the central financial institution, and the Federal Reserve greater than bitcoin.
Charles Schwab’s Strategist Skeptical of Cryptocurrency
Charles Schwab Chief Funding Strategist Liz Ann Sonders shared her ideas on cryptocurrency and the U.S. monetary and banking methods on a Yahoo Finance webinar final week.
The Wall Road strategist defined that she trusts the U.S. monetary system greater than she trusts cryptocurrency miners, stating:
I nonetheless put some religion in all the U.S. monetary system, the banking system, all of its protections, in addition to the ability of the central financial institution, the Federal Reserve, to kind of management the fiat forex that can be the worldwide financial customary and the world’s reserve forex — versus, say, bitcoin miners.
Relating to cryptocurrency, she mentioned: “I’m an admitted skeptic to some extent. I’m not on both finish of the spectrum, which means I’m a skeptic however I’m not [saying] that is full nonsense.”
She defined that she has been asking one query for a very long time, “which is what downside is that this fixing for?” Nonetheless, the strategist mentioned, “I’ve but to get a really compelling reply.”
Commenting on utilizing bitcoin as an inflation hedge, she famous that the cryptocurrency has been round since 2009 however “the one burst of inflation that we’ve gotten since that time period was throughout a three-month interval the place bitcoin was reduce in half. So that you kind of lose that argument.”
The strategist proceeded to lift considerations about bitcoin’s “focus,” which she considers a big risk. “The most recent information that I’ve seen is the highest 2% of bitcoin holders personal someplace between 90% and 95% of bitcoin. After which there’s leverage related to lots of this,” she described. The strategist cited “The implosion of Melvin Capital with Gamestop” and “The implosion of Archegos and shares 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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