Price volatility in Bitcoin has once again come under fire from bankers as analysts at Société Générale target the first cryptocurrency.
In a note to investors quoted by CNBC, the bank’s analysts claimed that “volatile price fluctuations” (BTC) have reduced their position in investment portfolios.
According to an investor note, the threat of government repression around the world will put significant negative pressure on Bitcoin’s price movement in the future.
In fact, the recent fall in bitcoin prices also fell with several negative regulatory measures from government agencies around the world. As Cointelegraph previously reported, the US Treasury requires the requirement to report cryptocurrency transactions over $ 10,000 to the IRS.
Analysts at Société Générale also touched on the comparison of Bitcoin versus gold, and agreed that investors view both assets as a hedge against deteriorating monetary policy. However, analysts are far from partial protection and have identified positive price action and fear of losing purchases as the only goodwill requirement for both vaults of valuable assets, saying:
“The only potential reward for bitcoin and gold investors is positive price movement, which is really the only thing they have in common, regardless of their ability to stimulate quick purchases.”
Despite recent problems with bitcoin prices, bitcoin is up 38% since the beginning of the year and up 312% last year. While some bankers may view volatility as a mistake, spokesmen like Mark Yosko, CEO of Morgan Creek Capital Management, view volatility as one of the characteristics of Bitcoin’s potential long-term value.
In a speech to CNBC on Thursday, Yusko claimed that volatility has been a necessary part of Bitcoin’s positive cumulative capacity of 223% per annum over the past decade.
“Bitcoin has the same volatility as the Amazon stock […] When was the right time to sell Amazon? This will never happen. Volatility is not your enemy. ”
Meanwhile, currency-friendly banking giant DBS in Singapore has released a report describing Bitcoin as “an option that cannot be bought with paper money.”