Two crypto fund managers say Ether (ETH) is not an investor-worthy asset, nor a great way to accumulate value.
According to a post published on June 11 by Steven McClurg and Leah Wold of Exponential Investment, Ether is a “risk asset,” not a reliable investment, as many believe in the crypto community.
Cryptocurrency ETH executives compare to “digital tungsten” and not to “golden gold”, as Bitcoin (BTC) has become known in some circles, since the symbol is not stable enough for future purchasing power:
“Ethereum lacks one of Bitcoin’s most important values: the expected deficit. Instead, the paradox is the reality.”
The report notes that monetary policy related to the ether issue is inconsistent, making the token offer vulnerable to inflation and invalid for maintaining value:
“Since Ether is not able to function appropriately as a warehouse of value, it remains a very risky speculative tool. Air carriers hope to be able to take advantage of subsequent price changes in the near future. They are seeking high returns coupled with high risk. Insights On the digital “bullion dance before our eyes. However, these visions are formed without evidence. Like was raised, they are just speculation. ”
Many fund managers still choose Ether
McClurge’s father comments came after the PwC report said that assets under cryptocurrency funds doubled in 2019 to $ 2 billion. 67% of these portfolios included investments in ether.
However, the pair concludes: “Ether is a low-value approach and cryptocurrency that you can speculate on.”
Grayscale Investments does not seem to agree with this assessment. On June 5, Cointelegraph announced that the company had purchased $ 110 million in ETH in 2020. As of May 19, the Ethereum Fund was $ 290 million.
The second largest cryptocurrency with market value is currently in a downtrend: its price fell 4% from $ 245 to $ 236 in 24 hours.