AR FinTech Head: Financial Advisors Don’t Know What BTC Is

AR FinTech Head: Financial Advisors Don’t Know What BTC Is

It is the age-old question both for professional and amateur investors: when is the right time to pile funds into bitcoin? Also, nowadays, this is the question that financial advisors keep hearing from all sides.

However, the counselors try to be cautious regarding these crypto assets, recommending their clients not to invest in them or products and other mechanisms related to bitcoin.

Advisors Reacting

Notably, some weeks ago the wealth management arm of Bank of America – Merrill Lynch – tabooed the purchase of BTC across the company.

Meanwhile, JPMorgan has also been pretty prudent concerning BTC, whereas its head Jamie Dimon even called BTC a “fraud” one time (however, admitting that the blockchain is real and later softening his own words).

Moreover, that’s not all: Tim Buckley, the top exec at Vanguard, previously said that there would never be any funds from the company on BTC.

Opposite Opinion

It is clear that bitcoin has not been the most stable currency so far. Hence advisors have kept telling people not to pile everything that they have in it.

However, the global head of financial technology strategy at Autonomous Research Lex Sokolin believes they are wrong.

"Cryptocurrency is very controversial, but it's really here to stay. And the underlying [blockchain] technology is really fundamental to the types of companies that people are building right now," said he, quoted by CNBC.

According to Sokolin’s words, anybody who would like to invest in BTC, must, first and foremost, try to understand what it is and how its underlying technology works.

"It's volatile right now, so you should not just go and fill your entire portfolio with cryptocurrencies. But it is a good way to add alternatives to your general allocation, something like 3 [percent] to 5 percent of your portfolio," explained the expert.

He concluded that advisors should learn how the blockchain works before they consult people.