Crypto is not sold out.
The analyst of Citi Josh Levin says to treat the many predictions of cryptocurrency and blockchain with "healthy skepticism" and to remain "broad-minded".
"Our broad conclusion based on empirical evidence to date is that investors should keep an open mind but deal with the most heated short-term crypto / blockchain predictions with healthy skepticism," Levin writes in a new note to customers.
Trust appears to pour into cryptic space while bitcoin prices have recovered this week with prices approaching $ 7,000. But remaining skeptical about encrypted after their dive from last year's historical highs makes sense. Warren Buffett said on Thursday in an interview with Fox Business that "will end badly" for encrypted investors.
How can you argue with billionaire Buffett?
The Crypto Scene
It is interesting to note that Citigroup is showing enormous interest in the crypt despite its analysts expressing skepticism.
Reports have emerged from the fact that Citi sought out the encrypted talent with a bitcoin background to evaluate the risks associated with money laundering in cryptocurrency.
Last year I reported that the UK brokerage platform of Citibank, the consumer division of Citigroup, offers customers access to ETNs (Ether exchange traded notes), according to XBT Group, a company based in Sweden that is providing the cryptocurrency investment platform.
Citi, however, recognizes that Bitcoin is well within the crypto and blockchain community. Conrad Lin, co-founder and CMO, FintruX Network says it is encouraging to see major financial organizations like Citi cut the growing relevance and business models that blockchain allows.
Lin says: "It is encouraging to see such established institutions open to evolution with the ever-changing financial landscape."
Another blockchain fan, Yuriy Avdeev, CEO of CINDX, says: "Citi recognizes encryption means that encryption and blockchain technology really do have value, and that investors should be cautious and show "healthy skepticism" when working with such a young cryptic market that has become a haven for a large number of scammers. "
Altif Brown, CCO of Constellation explains that legacy financial institutions would do well to keep an open mind when it comes to cryptocurrencies, because the blockchain potential for massive gains – and even to reinvent what is a transaction – does not it can be underestimated.
Brown states: "Citi's valuation is correct as investors need to look beyond the hype behind some of the most eye-catching projects towards technology-building projects that, literally, reinvent the wheel. overwhelmed by unrealistic cryptic forecasts in the short term, or those too skeptical to get out of the margins, they will surely be welcomed with regret. "
Find out more about encrypted by TheStreet here.