Here is the latest report that Allianz Global Investors has presented their opinion on the Bitcoin and Blockchain’s future to the world and it is a bad news for crypto lovers.
According to Allianz global, the cryptocurrency is a worthless asset class, even if blockchain technology might bring considerable benefits to investors.
“In our view, its intrinsic value must be zero,” Stefan Hofrichter, the company’s head of global economics and strategy, wrote in a recent blog post.
He added, “A bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream.”
He also compared Bitcoin to a textbook like a bubble “one that is probably just about to burst.”
“Bitcoin’s demise would have few spillover effects on the ‘real world,’ since the market for this cryptocurrency is still quite small in size,” he said. “As a result, we believe that the risks to financial stability stemming from bitcoin are negligible — at least as of today.”