{"id":11129,"date":"2021-08-18T00:54:31","date_gmt":"2021-08-18T00:54:31","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/charles-schwab-strategist-skeptical-of-crypto-puts-faith-in-banking-system-federal-reserve\/"},"modified":"2021-08-18T00:54:31","modified_gmt":"2021-08-18T00:54:31","slug":"charles-schwab-strategist-skeptical-of-crypto-puts-faith-in-banking-system-federal-reserve","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/charles-schwab-strategist-skeptical-of-crypto-puts-faith-in-banking-system-federal-reserve\/","title":{"rendered":"Charles Schwab Strategist Skeptical of Crypto \u2014 Puts Faith in Banking System, Federal Reserve"},"content":{"rendered":"

Charles Schwab\u2019s chief investment strategist says she puts faith in the entire U.S. financial system, the banking system, the power of the central bank, and the Federal Reserve more than bitcoin.<\/strong><\/p>\n

Charles Schwab\u2019s Strategist Skeptical of Cryptocurrency<\/h2>\n

Charles Schwab Chief Investment Strategist Liz Ann Sonders shared her thoughts on cryptocurrency and the U.S. financial and banking systems on a Yahoo Finance webinar last week.<\/p>\n

The Wall Street strategist explained that she trusts the U.S. financial system more than she trusts cryptocurrency miners, stating:<\/p>\n

I still put some faith in the entire U.S. financial system, the banking system, all of its protections, as well as the power of the central bank, the Federal Reserve, to sort of control the fiat currency that is also the global monetary standard and the world\u2019s reserve currency \u2014 versus, say, bitcoin miners.<\/p>\n

Regarding cryptocurrency, she said: \u201cI am an admitted skeptic to some degree. I\u2019m not on either end of the spectrum, meaning I\u2019m a skeptic but I\u2019m not [saying] this is complete nonsense.\u201d<\/p>\n

She explained that she has been asking one question for a long time, \u201cwhich is what problem is this solving for?\u201d However, the strategist said, \u201cI have yet to get a very compelling answer.\u201d<\/p>\n

Commenting on using bitcoin as an inflation hedge, she noted that the cryptocurrency has been around since 2009 but \u201cthe only burst of inflation that we\u2019ve gotten since that period of time was during a three-month period where bitcoin was cut in half. So you sort of lose that argument.\u201d<\/p>\n

<\/p>\n

The strategist proceeded to raise concerns about bitcoin\u2019s \u201cconcentration,\u201d which she considers a significant threat. \u201cThe latest data that I\u2019ve seen is the top 2% of bitcoin holders own somewhere between 90% and 95% of bitcoin. And then there\u2019s leverage associated with a lot of this,\u201d she described. The strategist cited \u201cThe implosion of Melvin Capital with Gamestop\u201d and \u201cThe implosion of Archegos and stocks like CBS Viacom\u201d as examples of what concentration issues could lead to.<\/p>\n

Noting that crypto could have \u201cunderestimated\u201d risk factors, she opined:<\/p>\n

I think that thread of leverage and concentration arguably can weave its way through a lot of these areas where you\u2019ve seen tremendous amount of speculation.<\/p>\n

What do you think about the comments by the Charles Schwab strategist? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nFeatured, Bitcoin regulation, Charles Schwab, charles schwab bitcoin, Charles Schwab crypto, Charles Schwab cryptocurrency, Crypto regulation<\/p>\n","protected":false},"excerpt":{"rendered":"

Charles Schwab\u2019s chief investment strategist says she puts faith in the entire U.S. financial system, the banking system, the power of the central bank, and the Federal Reserve more than bitcoin. Charles Schwab\u2019s Strategist Skeptical of Cryptocurrency Charles Schwab Chief Investment Strategist Liz Ann Sonders shared her thoughts on cryptocurrency and the U.S. financial and…<\/p>\n","protected":false},"author":0,"featured_media":11130,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-11129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11129"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=11129"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/11130"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=11129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=11129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=11129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}