UBS Wealth Warns Clients Crypto Prices Can Actually Go to Zero
Strategists at one of the world’s largest wealth managers are issuing a warning to newbie crypto investors plunging into the record rally: You could still lose all your money.
Between regulatory threats and central bank-issued competitors, there’s nothing stopping a wipeout in big-name digital currencies eventually, according to UBS Global Wealth Management.
As Wall Street jumps on the Bitcoin rally like never before, the Swiss firm says prices may rise in the near term, but the industry faces existential risks over the long haul.
“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,” authors including Michael Bolliger, the chief investment officer for global emerging markets, said in a report Thursday.
“Netscape and Myspace are examples of network applications that enjoyed widespread popularity but eventually disappeared,” the strategists wrote in response to rising client interest.
https://www.bloomberg.com/news/articles/2021-01-15/ubs-wealth-warns-clients-crypto-prices-can-actually-go-to-zero