Allianz Global Investors has cautioned the public that bitcoin may be on a course to
disaster as it’s doesn’t seem to be as much popular among potential buyers. In a recent blog post Allianz representative Stefan Hofrichter disclosed information about some “potential fatal flaws” of the popular cryptocurrency and speculated about its possible demise:
“It appears to us that bitcoin mania is a textbook-like bubble — and one that is probably just about to burst,” Hofrichter pointed out. “As a currency and asset class, bitcoin has potentially fatal flaws — which is why we believe it’s a matter of when, not if, the bitcoin bubble will pop.”
Hofrichter also outright denied that bitcoin ever has a chance of representing gold, emphasizing the fact that the new digital currency doesn’t possess intrinsic value and does not produce income. Along with his colleagues, he doesn’t believe that bitcoin is more resistant to inflation compared to traditional fiat money. Making digital transactions easier is also not a not priority on his list.
The crypto market has been falling following a series of quite unfortunate events, such as advert bans by Google, regulation threats and hacks. Generally remaining bearish, Hofrichter, however, still admits a possibility of Bitcoin’s breakout.