Deutsche Bank AG’s Wealth Management currently does not advise to invest in crypto-currencies, according to Markus Mueller, Global Head of Chief Investment Office. Problematic issues include high volatility, possible price manipulation and data loss or data theft, he told Bloomberg News in an interview.
“We do not recommend that. It’s only for investors who invest speculatively,” he said. “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. There is hardly any return scope left in other asset classes such as fixed income, he said.
Mueller is not the only person warning against crypto-currencies. 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. “We are still at the very beginning.”