income stream: As an asset, a cryptocurrency is a claim on nobody in contrast to sovereign bonds, equities or paper money and it does not generate an income stream, he wrote, according to Market Watch. As a currency, it is only a medium of exchange for larger-ticket items, and is simply too volatile to be considered as a numeraire or a store of value, concluding it makes cryptocurrencies unsuitable for investing in This makes cryptocurrencies entirely unsuitable for investing in. In a Jan. 30 column headlined Unencryptoed Why investors should steer clear of cryptocurrencies, Utermann said the distributed ledger technology lacks key features that make fiat money sustainable, including tax-raising powers, productivity in terms of trade and the ability to pay interest. As such, I would expect policy makers to take a close interest in the emergence of initial coin offerings ICOs that are being marketed as investments and a home for individuals' savings.' Andreas Utermann, Allianz Global Investors Read Bitcoin is about to do something it has never done before hint it's not good This is not the first time the former Merrill Lynch BAC, -0.32% banker has poured cold water on the viability of crypto assets. Rounding out Wednesday's post, Utermann said bitcoin mining the process by which bitcoins are created is a drain on the environment, so much so that society can't afford an increase in popularity. In December 2017, when the price of bitcoin BTCUSD, -1.08% was flying high, he told Bloomberg Television the cryptocurrency was pretty valueless, saying he would rather have something you can hold or see like the Mona Lisa painting Then a year later, at a panel discussion in London, Utermann said cryptocurrencies should be outlawed, adding, I am personally surprised that regulators haven't stepped in harder.
(news.financializer.com). As
reported in the news.
Tagged under income stream, fiat money topics.