Pascal Blanque, chief investment officer of Amundi, said on Thursday that cryptocurrencies such as Bitcoin are a “farce” and a symptom of the formation of a bubble in the financial market.
Bitcoin is trading at approximately US$39,364 (approximately Rs 2.873 million), which fell 35% last month after China stepped up its efforts to crack down on the mining and trading of the largest cryptocurrency to prevent speculation and financial risks. As of 10:37 am IST, the price of Bitcoin in India has exceeded Rs. 2.749 million.
At the press conference, Blanc described the cryptocurrency as a “farce” and added that it was a sign of a market bubble.
“Bitcoin will be remembered for pushing central banks to adopt digital currencies,” he said, adding that the government and regulators will eventually “stop the music.”
Blanque said that it is more important for investors to increase their exposure to the renminbi and then diversify their investment in cryptocurrencies.
Earlier this week, a whale account woke up nine years later, and it can provide valuable lessons for cryptocurrency investment.
The account that held 900 bitcoins when it was dormant in 2012 is now active. It is impossible to determine what caused the owner of the account to wake up from sleep, or whether the account has been hacked and accessed by others. But for those who are worried about potential losses in the short term, especially since the recent market crash, this explains why holding investments for a long time may yield immeasurable gains.