Assetz Capital investors predict cryptocurrency collapse
ALMOST half of Assetz Capital’s investors believe the cryptocurrency market is on the brink of collapse.
The peer-to-peer business lending platform’s latest investor barometer, which incorporates the views of more than 1,000 lenders, found 43 per cent believe digital currencies such as Bitcoin and Ethereum are set to fail.
Only 16 per cent said they see them as worthwhile investments.
It comes as the price of Bitcoin has plummeted from highs of almost $20,000 (£14,000) last year to lower than $7,000 last month.
“The rise in cryptocurrency over the past 12 months has been driven by consumers’ search for fairer returns on their investments,” Stuart Law, chief executive of Assetz Capital, said.
“Traditional banking has failed to deliver in this sense over the last decade, so as technology makes alternative investments more accessible, it is obvious that investors would look elsewhere.
“However, there’s clearly still a great deal of uncertainty amongst smart investors when it comes to cryptocurrency – the market is still in its unpredictable infancy, so the risk and wild daily swings in value of cryptocurrencies is proving too much for many.”
Read more: Blockchain special feature
Despite the volatility of cryptocurrencies, there have been several initial coin offerings (ICO) to launch crypto-backed P2P platforms using blockchain technology for faster payments and record-keeping.
Business P2P lender Crowd for Angels is also running its own ICO for ANGEL tokens that ends this week.