'Fear of the unknown' is holding TradFi investors back from crypto - Bloomberg analyst
Jamie Coutts, crypto analyst at Bloomberg, believes this is a "missed opportunity" that traditional asset managers are choosing not to learn about crypto.
Interview
Jamie Coutts, a crypto market analyst for Bloomberg Intelligence, says “lies” and “fear of the unknown” are what have kept traditional money managers from investing in cryptocurrency.
Speaking to Cointelegraph at the Australian Crypto Convention this weekend, Coutts claims there has been a continuous “fake” that “there is no intrinsic value in blockchains” .
"These asset managers hold stocks, like Amazon and Facebook [...] which for the first few years these companies had no earnings," Coutts explained, adding that Facebook in its early days "n had no profit [. ..] or considered to have intrinsic value:"
“Yet they could understand that there is network value here, that the network grows, that the value of the asset comes from the number of people who use the products.”
Coutts believes that "although not all blockchains are cash-generating assets, including Ethereum", there is certainly intrinsic value.
However, the Bloomberg analyst said he couldn't quite understand why there was hesitancy to embrace cryptocurrency, ruling out lack of regulation as the reason:
“Regulation can't be one of them. Let me rephrase that. Regulation is always a concern, but BTC is regulated.”
Coutts said "there really isn't any regulatory risk" because crypto became regulated "at the time when it 'became a taxable item that you have to' disclose to the jurisdiction's tax authorities in which you are".
Instead, Coutts said it could be “just fear of the unknown,” adding that asset managers ignoring or choosing not to learn about cryptocurrency is a missed opportunity.
Coutts suggested that those hesitant to invest in cryptocurrency should look beyond market volatility and focus on what cryptocurrency actually brings to the table.
"The best thing we can do is understand the global trends that are being taken...
Jamie Coutts, crypto analyst at Bloomberg, believes this is a "missed opportunity" that traditional asset managers are choosing not to learn about crypto.
Interview
Jamie Coutts, a crypto market analyst for Bloomberg Intelligence, says “lies” and “fear of the unknown” are what have kept traditional money managers from investing in cryptocurrency.
Speaking to Cointelegraph at the Australian Crypto Convention this weekend, Coutts claims there has been a continuous “fake” that “there is no intrinsic value in blockchains” .
"These asset managers hold stocks, like Amazon and Facebook [...] which for the first few years these companies had no earnings," Coutts explained, adding that Facebook in its early days "n had no profit [. ..] or considered to have intrinsic value:"
“Yet they could understand that there is network value here, that the network grows, that the value of the asset comes from the number of people who use the products.”
Coutts believes that "although not all blockchains are cash-generating assets, including Ethereum", there is certainly intrinsic value.
However, the Bloomberg analyst said he couldn't quite understand why there was hesitancy to embrace cryptocurrency, ruling out lack of regulation as the reason:
“Regulation can't be one of them. Let me rephrase that. Regulation is always a concern, but BTC is regulated.”
Coutts said "there really isn't any regulatory risk" because crypto became regulated "at the time when it 'became a taxable item that you have to' disclose to the jurisdiction's tax authorities in which you are".
Instead, Coutts said it could be “just fear of the unknown,” adding that asset managers ignoring or choosing not to learn about cryptocurrency is a missed opportunity.
Coutts suggested that those hesitant to invest in cryptocurrency should look beyond market volatility and focus on what cryptocurrency actually brings to the table.
"The best thing we can do is understand the global trends that are being taken...
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