Deutsche Bank AG’s Wealth Management says it does not advise to invest in crypto-currencies.
According to global head of chief investment office, Markus Mueller, problematic issues include high volatility, possible price manipulation and data loss or data theft, he revealed in an interview.
“We do not recommend that. It’s only for investors who invest speculatively,” says Mueller, and continued, “There is a realistic risk of total loss.”
According to Mueller, recent price increases reflect a lot of imagination, driven by the current situation in the market, and says there is hardly any return scope left in other asset classes such as fixed income.
Many other authorities are against crypto-currencies including government officials. Bank of Spain Governor Luis Maria Linde said crypto-currencies are an asset that carries enormous risks. And Austria’s Financial Planners Association compared bitcoin investments with a “casino visit”.
In order to establish crypto-currencies as some kind of asset class in the future, more regulation, security and transparency, for example via official trading venues, are required, according to Mueller. “Important issues such as liability and documentation are unclear,” he said.