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Institutions have only dipped their toes in crypto, says the former British Chancellor

                                                            Philip Hammond – ehemaliger Kanzler des Vereinigten Königreichs und ehemaliges Mitglied der Konservativen Partei – glaubt, dass die Menschen beim Betreten des Cryptowährungsraums besonders vorsichtig sein sollten.  Er sagte, dass die Institute, obwohl sie die Anlageklasse anerkannt haben, in Bezug auf Investitionen nur die Zehenspitzen gezogen haben.

Dip your toes

In October of this year, former Chancellor Lord Hammond became Senior Advisor at Copper – a UK custody company for Cryptocurrencies, which provides infrastructure for the institutional digital asset community. Although part of the world of Bitcoin and alternative coins, he would not recommend investing large amounts of money in the asset class.

He pointed out that there are numerous companies and institutions that have entered the cryptocurrency market. However, most of them just “dipped their toes” as the industry is still very volatile.

“But it’s a tip – it’s a tiny fraction of your assets in a very volatile asset class.”

In his view, people should keep this fact in mind and have low exposure to digital assets that describe the investment as “gambling money”. In addition, Lord Hammond said that a large section of society thought it was “a game rather than a serious investment.”
Philip Hammond, The Guardian
In October, American television personality Jim Cramer admitted his reason for being in Bitcoin and Ethereum investing is related to gambling:

“I’ve just played with the psychology of the masses, however, and I have no idea why these things have increased so.”

It’s worth noting that many other prominent names like Michael Saylor, Saifedean Ammous, Mayor Francis Suarez, Senator Synthia Lummis, and others are vigorously represented in the cryptocurrency industry, especially Bitcoin. According to them, the primary digital asset will be the best investment solution in the future monetary chaos that is expected.

Aside from encouraging people to be cautious about investing in the asset class, Hammond said that the “distributed ledger technology” (DLT) that underpins cryptocurrencies is “finally all of what we mean by financial services right now,” will include.

A competitive advantage

Despite calling crypto investing a game of chance, Hammond urged UK authorities earlier this month to shift their focus from Brexit to digital currencies. He argued that this way the kingdom could secure its financial status as bitcoin and altcoins gain acceptance on a macroeconomic level:

“Personally, I think that the momentum can no longer be stopped. We have to act quickly and effectively to secure London’s position. “

The ex-chancellor warned that ignoring the asset class is not advisable as many European countries have already embraced it.

“If we don’t look closely, we’ll find some surprising people ahead of us,” he concluded.

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Source: Crypto News Deutsch

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