Copy link
Increase text size
Decrease text size
Link copied

Crypto investors must limit their investment as Bitcoin and other cryptocurrencies could go the way of MySpace, says UBS Wealth

UBS Global Wealth Management says it's possible for the prices of Bitcoin and other cryptos to slide to zero.

Image by WorldSpectrum from Pixabay

Wed, 03 Feb 2021, 07:51 am UTC

The crypto market rally saw most cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) smash their previous records and reach new all-time highs this year. However, strategists from one of the world’s largest wealth management firms issued a warning to investors highlighting the possibility that they could still money.

Even with the current crypto market rally, UBS Global Wealth Management noted that well-known cryptocurrencies such as BItcoin are still facing regulatory threats and competition from CBDCs, according to Bloomberg. While the prices of digital currencies are likely to rise even further in the near term, the future of the entire industry remains uncertain with the presence of these existential risks.

One of the biggest risks facing investors is the possibility that they could lose their entire investment once their crypto holding’s price slides down to zero. “There is little in our view to stop a cryptocurrency’s price from going to zero when a better-designed version is launched or if regulatory changes stifle sentiment,” UBS Wealth said in a report released on Thursday. One of the report’s authors is the firm’s chief investment officer for global emerging markets, Michael Bolliger.

While there is rising interest in cryptocurrencies nowadays, UBS Wealth compared them to Netscape and Myspace, two previously popular services that eventually went out of style. “Netscape and Myspace are examples of network applications that enjoyed widespread popularity but eventually disappeared,” the report added.

It is a well-known fact that the prices of cryptocurrencies such as Bitcoin and Ether are highly volatile. BTC, which was only trading above $10,000 in September 2020, suddenly skyrocketed and even set a new record this year when it traded above $41,000 last month. The price has retreated once more and the crypto is now priced at $36,539 at the time of writing based on data from Coinmarketcap.

Facing such price uncertainty, UBS Wealth offered a suggestion to investors to limit the amount they place in cryptocurrencies. “Investors in cryptocurrencies must therefore limit the size of their investments to an amount they can afford to lose,” the report said.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • abana
  • 2021.02.18 23:08:25
  • 0
  • ·
  • 0
  • Bitcoin (btc) $51,719.00 (+3.13%)
  • Ethereum (eth) $1,788.66 (+7.17%)
  • Tether (usdt) $1.00 (-0.14%)
  • Binance Coin (bnb) $235.98 (+0.11%)
  • Cardano (ada) $1.11 (-0.96%)
  • Bitcoin (btc) $51,719.00 (+3.13%)
Mar 8, 2021 (Monday)
BTC Drops by 1.13% Within 5 Mins, Marking 50,320.36 USDT
BTC Surges by 1.0% Within 5 Mins, Marking 50,888.3 USDT
Geth v1.10.1 Released
ICON (ICX) Unaffected By South Korean Tax Investigation Into ICONLOOP, Says Chairman
ETC Group To Launch Ethereum ETP On Deutsche Borse
BTC Tops List Of Crypto Net Outflow With $470.34 Mln In Past 18 Hours
Central Bank Of France Eyes XRP As Basis For Digital Euro
Art & entertainment NFT creation and trading platform Curio tweeted to reveal that all 250 editions of the Technical Boy NFT have been sold out in 5 minutes.
Decentralized lending platform Ruler Protocol announced to support flash loan.
Argo Blockchain Completes Texas Land Purchase To Build Bitcoin Mining Facility
Atari To Launch Crypto Casino In Ethereum-Based Virtual World
Peter Brandt Believes There’s 50% Chance Bitcoin Will Go To $1 Million
NFT Global Reveals That Soribada’s Corporate Crisis Has Nothing To Do With SOBA Project
OKEx Lists Velo's Native Asset, VELO, For Spot Trading
Norway's Aker ASA Sets Up Bitcoin Unit
The Number Of BTC Held On Exchanges Crashed 20% In 12 Months
If Ripple Goes Away, XRP Will Keep Trading: CEO Brad Garlinghouse
Chainlink announced that decentralized finance protocol Set Protocl has integrated with DPL/USD price feed.
PolkaFoundry To Postpone IDO Plan
UFC Announces Regional Partnerships With Top Crypto-Only Sportsbook
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.