«Cryptocurrencies understood as currencies with the classic functions of means of payment, unit of account and store of value have no future. The party is destined to end ». This was stated by Mario Cribari, partner and head of the investment strategy of Bluestar Investment Managers, contacted by beraking latest news. Cryptocurrency prices have flared up in the wake of Bitcoin’s rebound over $ 50,000 after Paypal’s green light for its UK users to hold and buy Bitcoin and other cryptocurrencies. “We are not invested and have no position,” explains the manager of the Swiss company. “In our opinion from a financial point of view it is speculation and not investment, which does not mean that they cannot be part of a portfolio and that you cannot make money,” he continues. Just know that you are investing in something whose value can go to zero and be ready to lose everything. Cryptocurrencies, Cribari points out, «are absolutely impossible to evaluate: there are no fundamentals on which they can be evaluated. Bitcoin’s value can range from zero to $ 100,000 and beyond, and anything in between is justifiable in the absence of any fundamental valuation. There is no supply or demand and the creation process is very opaque ».
The goal of replacing physical coins also appears to be out of reach for Bitcoin and other cryptocurrencies. «Of the three classic functions of money, namely unit of account, store of value and means of payment, the only one that perhaps they are managing to satisfy a little is that of means of payment. The others absolutely not, ”explains the Bluestar manager. Furthermore, the future does not look rosy for the cryptosphere. Tax authorities are tightening up on the nature of payments made and regulation threatens to strangle these assets. “States will never admit to losing one of the greatest powers they have, which is that of monetary seigniorage. It is one of the last things left to them and they will not accept losing control of monetary creation, giving it to algorithmic miners. At some point, some form of regulation will be introduced that will crush this type of business. China has already done so in a very far-sighted way ”, emphasizes Cribari. Other countries, on the other hand, “are nagging and perhaps want to wait for values to rise again so that they can do more harm to those who have decided to invest”. But a few more years could still pass for this objective.