Charles Schwab’s chief investment strategist says he trusts the entire US financial system, the banking system, the power of the Central Bank and the Federal Reserve system more than bitcoin.
Charles Schwab’s strategist skeptical of cryptocurrency
Liz Ann Saunders, chief investment strategist at Charles Schwab, shared her thoughts on US cryptocurrencies and financial and banking systems at a Yahoo Finance webinar last week.
Wall Street strategist says he trusts US financial system more than cryptocurrency miners:
Still all the U.S. financial system, banking system, all the protection and the Central Bank of the Federal Reserve System, at the same time, the standard world currency and a fiat currency still believe in you the ability to control the world’s reserve currency — for example, compared to bitcoin miners.
As for cryptocurrency, ” I’m a well-known skeptic to some extent. I’m not on either side of the spectrum, which means I’m sceptical, but I’m not saying it’s complete nonsense.”
He explained that he had been asking the question for a long time :” what problem does that solve?”But the strategist said,”I haven’t gotten a very convincing answer yet.”
Commenting on the use of bitcoin as a hedge against inflation, he noted that the cryptocurrency has existed since 2009, but ” the only inflation increase we have achieved since then was in the quarterly period when bitcoin was halved. So you’ll lose this argument.”
The strategist went on to voice concerns about the “concentration” of bitcoin, which he sees as a significant threat. “According to the most recent data I have seen, 2% of the largest bitcoin owners own somewhere between 90% and 95% of bitcoin Dec. And then a lot of that depends on the impact levers, ” he explained. Strategist cited” Melvin Capital boom with Gamestop “and” ARCHEGOS like CBS Viacom and stock boom ” as examples
