Investor and financial teacher, Robert Keusaki, warned of the potential danger from the paper bitcoin (BTC) and precious metals through tools such as the boxes circulating on the stock exchange (ETFS).
Keusaki said that although the circulating investment funds make some assets within reach of investors and reduce the barrier to entering, the investor does not maintain the basic asset physically. he books Friday:
“ETF is similar to having a personal defense rifle image. Sometimes it is better to have real, silver, bitcoin and rifle. Learn the differences when it is better to have real and when it is better to get paper.”
In May, investors were asked to get rid of “fake funds” for pregnant assets such as BTC, gold and silver to counter the effects of inflation and the decline in the US dollar.
Kiyosaki’s comments reflect the old problem of financial institutions that issue paper claims about the solid assets they claim but may not already have liquid assets.
However, when confidence in the institution is shaken, whether due to rumors, financial shock or bankruptcy, investors may speed up withdrawing their money once. This sudden increase in drawing operations is known as the Bank Run. If the institution lacks sufficient liquid reserves to meet these demands, it can quickly escalate to a crisis, which may lead to collapse.
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ETF analyst says that the investment funds circulating have a long record of integrity, says ETF analyst.
Eric Balunas, senior Bloomberg analyst ETF, told Cointelegraph that the circulating investment funds have some of the most powerful security guarantees against this type of fraud due to the separation of ETF exporters and guardians who hold basic assets.
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“The investment funds traded legally must put the assets with the trustee. So all ETF shares are connected to the actual bitcoin; it is one ratio to one, there is no paper,” said Balunas.
“I think in the world of encryption, there is doubt about the traditional world of financing, and I understand it,” Balchunas told Cointelegraph. However, the ETF sector is “a 30 -year -old industry, which is a very clean manufacturer with a reputation.”
Balunas said that the circulating investment funds may be a safer bet on the wealthy Bitcoiners, as the self -body can make it targets for the bonding key attacks or ransom attempts committed by violent criminals.
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