The CEO and global chief investment officer for Allianz Global Investors, Andreas Utermann, thinks cryptocurrency should be “outlawed.” According to a report prepared by Reuters, Utermann made his proclamation during a panel discussion this past Tuesday in London. He was basing his opinion on the fact that the crypto markets have declined this year, which only proves that he has no understanding of the markets.
Utermann stated, “You should outlaw [crypto assets]. I am personally surprised that regulators haven’t stepped in harder.” His words aren’t too surprising, as most fiat proponents always look for an excuse to talk poorly of crypto.
Despite 2018 not seeing the massive increases in value that were predicted at the beginning of the year – Bitcoin Core (BTC) was supposedly going to increase to $60,000 – the markets are actually performing better now than they were a year ago. Overall, volatility is much lower than it was and regulations are being created to help guide the industry into the future.
The downturn has not deterred investors. A recent study conducted by the Cambridge Centre for Alternative Finance indicated that the number of verified users in the crypto space doubled during the first three quarters of the year. Last year, there were only 18 million, but there are now around 35 million.
The number of crypto accounts has increased, as well. There were only 85 million last year, but there are an estimated 139 million now. All of these factors indicate that a potential market recovery is on its way soon.
According to the study, “Conforming with popular narratives, survey data indicates that the majority of users – both established as well as new entrants – are individuals and not business clients. Individuals can be hobbyists, retail investors, consumers, or users seeking a better investment or payment alternative. Growth rates were at their highest in 2017, and the number of new user accounts as well as ID-verified users continued to rapidly grow in 2018 as well.”
Every new financial product ever introduced experienced volatility at first. It is a natural action as people figure out how things work. However, cryptocurrency is performing better than ever and is on the path to do exactly what it was designed to do – be a stable and usable alternative to state-backed fiat.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.