Cryptocurrencies such as Bitcoin are a "farce" and a symptom of bubbles forming in financial markets, Amundi chief investment officer Pascal Blanque said on Thursday.
Bitcoin, trading at around $39,364 (roughly Rs. 28.73 lakhs), fell 35 percent last month after China doubled down on efforts to prevent speculative and financial risks by cracking down on mining and trading of the largest cryptocurrency. As of 10:37am IST, Bitcoin price in India stood at over Rs. 27.49 lakhs.
Speaking at a news conference, Blanque described the cryptocurrency as a "farce," adding that it was a symptom of the bubbles forming in markets.
"Bitcoin will be remembered for pushing central banks to adopt digital money," he said, adding that governments and regulators will ultimately "stop the music."
Blanque said that it was much more important for investors to increase their exposure to the renminbi, China's currency, then diversify into crypto currencies.
Earlier this week, a whale account that has woken up after nine years and it could offer a valuable lesson in cryptocurrency investment.
The account that held 900 Bitcoins when it went dormant in 2012 is now active. It's impossible to ascertain what made the owner of the account come out of hibernation, or if the account has been hacked and accessed by someone else. But for those worried about potential losses in the short term, especially since the recent market crash, this shows why holding on to your investment in the long term could reap unfathomable gains.