That’s why Ethereum is, according to some Fund managers, a bad investment – Coin Update

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In the last few months, the investment has increased demand for Ethereum strong.

Nothing shows this as much as the Ethereum Trust of Grayscale – a regulated and publicly trade comparable investment vehicle that is supported by ETH. A share of the trust equal to 0,094 ETH, reached last week on the secondary markets, the value of 239,50 dollars. This means that investors of the shares purchased with a commitment in the crypto-currency, with a surcharge of 1.000%.

Nevertheless, Fund managers have published in the field of crypto-currency recently, in a report to the investment case, Ethereum has been debunked.

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Ethereum – there is no profitable institutional investment

As Bitcoin is performing in Altcoins below average, look for institutional investors beyond those of the market leader. The best bet next to BTC is Ethereum, one of the most liquid crypto currencies, it says.

The 2 trillion Dollar asset Manager, Fidelity Investments announced last year that he prefers to the recording of Ethereum in its Trading and custody services. And the Supervisory authorities in the us CFTC (the wait for the presidency on the markets for crypto-derivatives holds) that fully regulated, ETH Futures are gaining in popularity.

According to the Manager of the crypto-Fund Exponential Investments Ethereum, however, is not viable for institutional investment.

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Steven McClurg and Leah woods of Exponential Investments, have published an article on this topic with the title “Ether and Bitcoin are not the same”.

The presented case is extensive, but your assertion that “Ether is a high-risk asset and not an investment”, boils down to the following few points:

The Lack of a prior knowledge or a consistent monetary policy in Ethereum makes it impossible to be a digital value storage means.
The application of ETH as a Form of “Gas” means that you can not be too high, otherwise the user will not be able to take advantage of the underlying network.
Ethereum investors have a different mentality than Bitcoin investors, what is the value of an upper limit.Due to the way the Blockchain is structured, have Ethereum potential security problems, if there is more:

“If more users join, the cost of gas, the clogged network, there are potential safety problems, which reduces the value of the service, which leads to a poor user experience, and users fall off and switch to a different block chains.”

Not the only skeptic

Forest and McClurg is not the only Fund Manager in the crypto-space, the investment potential of Ethereum skeptical.

Also Kelvin Koh explained that he is currently Bitcoin is more bullish than in the case of Ethereum.

The Partner of The Spartan Group, formerly of Goldman Sachs, leads back to these thoughts on the fact that with regard to the appreciation of Ethereum 2.0 “considerable uncertainty” exists. There is particular uncertainty about the economic impact, and possible technical defects.

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There is also criticism of Jeff Dorman of Arca, after the fact, that the ETH was traded with the rumor that Satoshi could be back**, so close to Bitcoin, notes that “you do not need to have the majority of digital Assets”.

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