Photo = Reuters
The price of bitcoin, a cryptocurrency leader, is plummeting. It was restored to its original state in about 20 days after the first breakthrough of $30,000 on the 2nd. There are many views that it is an adjustment due to a steep surge in a short period of time.
Given this high volatility, the criticism that it is still a means of speculation rather than a means of investment is raising its head again. Private bankers (PBs) of major banks dealing with property owners also said that they’do not even consult with customers’ for this reason.
Since last month, when Bitcoin was on the rise, we asked bank PBs about Bitcoin’s prospects and investment value. Park Hyun-sik, head of Hana Bank’s investment strategy department, said, “When the dollar value falls and liquidity increases, there is a tendency toward virtual currency, and there is an advantage because there is no tax.” He diagnosed it as “close to”. He added, “It’s kind of a trend, it’s a speculative asset, and it’s not worth the investment.”
It was a joint story of PBs that it was rare to even offer or recommend bitcoin counseling to asset owners. Hee-jeong Kim, head of NH All-Baek Advisory Center of Nonghyup Bank, pointed out, “We are not putting bitcoin into the asset allocation of asset owners,” he said. I did.
“Bitcoin is an asset that cannot be analyzed,” said Jeong Seong-jin, the PB team leader at Kookmin Bank’s Yangjae PB Center.
Because of this, it is said that there are many cases of private investors who invest in Bitcoin rather than through PB centers. One reason is that the PB center does not provide investment advice for Bitcoin.
Another reason banks are reluctant to consult is that Bitcoin’s volatility can lead to a’heavy loss situation’. Even if not, banknotes are taking a very conservative approach to highly volatile products as losses from private equity funds such as the Overseas Interest Rate Derivatives Combined Fund (DLF) crisis and the Lime Fund crisis in 2019 continue. If you recommend buying bitcoins, and if 30% plunges in a month, it could lead to a situation that is incomparable to the DLF crisis.
An official at a bank PB center said, “The proportion of customers who buy derivatives or high-risk products has decreased due to the trauma of the private equity crisis.” “Customers who seek high-risk, high-return often turn to brokerage firms.”
In the end, even if you buy, there are many advices that it is better to invest a small amount with extra funds. Han Soo-yeon, deputy manager of Woori Bank’s TCE Gangnam Center, advised, “There are many things that virtual currency is more cash-like than before and the risk is reduced.”
As long as the volatility of bitcoin does not decrease to the level of stocks, it is unlikely that for the time being, asset prices will be consulted by PBs for bitcoin.
Reporter Jeong So-ram/Oh Hyun-ah [email protected]
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