Traditional finance stays away from crypto “for fear of the unknown”

Jamie Coutts, a crypto analyst at Bloomberg Intelligence, said it was “misrepresentation” and “fear of the unknown” that kept traditional portfolio managers away from investing in crypto.

Speaking to Cointelegraph at the Australian Crypto Congress, Coutts argued that there is still a “misrepresentation” that blockchains have no intrinsic value.

“These asset managers own stocks like Amazon and Facebook. […] these companies didn’t generate revenue for the first few years either,” said Coutts, adding that Facebook was also unprofitable in the early stages and didn’t seem to have intrinsic value.

“Still, they understood that there is network value here, that the network is growing, and that the value of the asset comes from how many people use the product.”

Still, the Bloomberg analyst says he doesn’t understand why he has reservations about using crypto, while he thinks the lack of regulation is not a reason.

“Regulation can’t be the reason for that. Let me reiterate. Regulation has always been a concern, but BTC is regulated.”

Coutts said that crypto is a regulated asset from the moment it begins to be taxed, so there is not much of a legal risk.

Instead, Coutts said that the reason for the reservation may simply be “fear of the unknown”, a missed opportunity for asset managers to ignore or knowingly opt out of crypto education.

Coutts explained that those who hesitate to invest in crypto should look beyond market volatility and focus on what cryptocurrencies can really offer.

Traditional finance stays away from crypto "for fear of the unknown"
Jamie Coutts speaks at the Australian Crypto Congress on Sept. 17
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