BlackRock, a Global Investment Management firm, has advised investors to exercise caution against the possible losses in Cryptocurrency. The remarks are part of the commentary published in its Global Weekly on Monday by Mr. Richard Turnill, a renowned global chief investment strategist. Though outlook is positive, chances are that you may completely lose the investment. Despite bright future envisaged for the Blockchain, many obstacles remain to its growth.
According to the commentary published in the weekly of BlackRock, the Cryptocurrencies find wide usage as the market worldwide matures in the future. However, the Cryptocurrencies in the current scenario can be considered by only those, who are ready to face the complete losses. In the same path, the Blockchain has to overcome the obstacles in the long run to reach the promising stage.
The Cryptocurrency market is unregulated and volatile. Therefore, the investors should exercise extra caution when including Cryptocurrencies in their portfolio.
The Blockchain is likely to disrupt the payment mechanism of a wide range of industries owing to its upside potential and reduced risk and more secure. However, the adoption of blockchain is not so easy and requires the involvement of central bankers and regulators.
The adoption of blockchain in the financial industry eliminates the risks and inefficiencies related to human processes. However, changes in the software are necessary for an immediate shift to the blockchain. Therefore, companies take a long time for implementing blockchain in their processes despite promising benefits.
The commentary by Mr. Turnill or BlackRock targeting the Cryptocurrency is not the first. They have also chimed in the past against the conversion into Cryptocurrency.
In the previous commentaries, Mr. Turnill termed the markets involving Cryptocurrency are more scarier and crashes likely. There is no mechanism in place to assess the fair value of bitcoins and other digital currencies.
Mr. Larry Fink, Chief Executive Officer of BlackRock, has forecasted excellent growth potential for cryptocurrencies despite issuing a different message in the last fall.
Blackrock may not implement the Cryptocurrency so soon. The company has already turned down the exchange traded fund for bitcoins. Mr. Turnill said that wait and watch approach is needed since the market is still in the nascent stage.