Swiss Bank UBS Chairman Warns Against Investing in Bitcoin
Another warning against investing in bitcoin has come from a giant bank. This time, the Chairman of Swiss bank UBS says bitcoin is not the best investment option. According to UBS's Chairman, Alex Weber, cryptocurrencies are not investments the bank "would advise."
The statement was made as the price of bitcoin has fallen by 12% in 24 hours this week amid news from South Korea on banning anonymous cryptocurrency trading. Weber talked about the risks of investing in cryptocurrencies at the Davos world economic forum, according to CNBC.
Alex Weber says cryptocurrencies are speculative and risky
During his talk at the Davos world economic forum, Weber said that cryptocurrencies, in general, are not supported by UBS.
“Retail clients, who don’t fully understand these products, should be protected from going into these products, because if there is a retail client affected in the future, the question will be again who was the bank that sold them these products and then banks will be blamed again for what has happened.”
The statement comes despite the fact that many people have shown interest in investing in the cryptocurrency market. However, it is important to mention that at the same time several banks, wealth funds and big companies have expressed concerns regarding bitcoin's potential to work as a bubble.
Furthermore, governments from all the world have shown intentions to regulate the cryptocurrency market. The volatility of the bitcoin and several other digital currencies has made many companies also decide to stop offering support to cryptocurrency payments. In this context it remains to be seen if investors will continue to have such high interest in purchasing cryptocurrencies.
For the moment, it appears that investors have not lost their faith in cryptocurrencies. Even more so, despite the new announcement from South Korean authorities on banning anonymous cryptocurrency trading, some investors have claimed that there will be no reason for them to not invest.
