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Charles Schwab strategist, crypto-skeptic – trusts Federal Reserve and banking system – Featured Bitcoin News

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Charles Schwab, chief investment strategist, says she trusts the entire U.S. financial and banking system, as well as the Federal Reserve power and central bank power more than bitcoin.

Charles Schwab strategist, cryptocurrency skeptical

Charles Schwab’s chief investment strategist Liz Ann Sonders shared her thoughts about cryptocurrency and the U.S. banking and financial systems during a Yahoo Finance webinar last Wednesday.

The Wall Street strategist explained that she believes the U.S. financial system is more trustworthy than cryptocurrency miners.

I trust the American financial system, including the banking system, and all of its protections. The Federal Reserve has the power to control fiat currency, which is also the norm. Global monetary and global reserve currency – relative, for example, to bitcoin miners.

Regarding cryptocurrency, she said, “I’m an admitted skeptic to some extent. I’m not at either end of the spectrum, which means that I’m skeptical, but not skeptical. [saying]This is total nonsense.

She explained that she had been asking the same question for a while: “What’s this problem?” The strategist replied, “I have yet not to get a very convincing response.”

Commenting on the use of bitcoin as an inflation hedge, she noted that the cryptocurrency has been around since 2009, but “the only surge in inflation we’ve had since that time was during a three month period where bitcoin has been cut in half. This argument is kind of lost.

The strategist raised concerns about Bitcoin’s “concentration”, which she regards as a significant threat. “The latest data I’ve seen is that the top 2% of bitcoin holders own between 90% and 95% bitcoin. And then there’s leverage associated with a lot of that,” he said. The strategist cited “The collapse of Melvin Capital with Gamestop” as an example of what focus issues could lead.

She stated that the crypto could have ‘underestimated’ the risk factors.

I believe that the thread of leverage and concentration can arguably work its ways into many areas where you have seen a great deal of speculation.

What do YOU think of Charles Schwab’s words? Leave your comments below.

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