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Crypto Skeptical Charles Schwab’s Strategy: Believe in the Banking System, the Federal Reserve – Bitcoin Spotlight News

Chief investment strategist Charles Schwab says he believes more in America’s financial system, the banking system, the power of the central bank and the Federal Reserve than he does bitcoin.

Charles Schwab is a strategist, skeptical about cryptocurrencies

Charles Schwab, head of investment strategy at Liz Ann Sonders, shared his thoughts on cryptocurrencies and the US banking and financial systems in a Yahoo Finance webinar.

A Wall Street strategist explained that he trusts the US financial system more than cryptocurrency miners and said:

I continued to believe in the entire American financial system, the banking system, all its protections, and the power of the central bank, the Federal Reserve, to control fiat currency in some way, which is also the global monetary standard. the world’s reserve currency, unlike, say, bitcoin miners.

Regarding cryptocurrencies, he said: “I am a somewhat recognized skeptic. I’m not on either end of the spectrum, which means I’m skeptical, but not [saying] this is complete nonsense. “

He explained that for a long time he had asked a question: “What is this for?” However, the strategist said: “I have not yet received a very convincing answer.”

Regarding the use of bitcoin as collateral for inflation, he noted that the cryptocurrency has been around since 2009, but “the only inflationary burst we’ve received since then was in a three-month period when bitcoin was cut in half. So somehow he loses that argument. “

The strategist expressed concern about the “concentration” of bitcoin, which he sees as a significant threat. “According to the latest data I have seen, the top 2% of bitcoin owners have between 90 and 95% bitcoins. So, a lot of leverage is associated ”, he described. The strategy cited the collapse of “The Melvin Capital and Gamestop” and “Archegos and stocks like CBS Viacom” as examples of what concentration problems could lead to.

Noting that crypto might have “underestimated” risk factors, he said:

I think the leverage and concentration line is possibly intertwined with these areas where you have seen tremendous speculation.

What do you think of the strategist Charles Schwab’s comments? Let us know in the comment section.

Image loans: Shutterstock, Pixabay, Wiki Commons

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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