The investor and financial mentor Robert Kiyosaki warned about the potential risk from handling the Bitcoin paper (Btc) and precious metals by instruments such as funds exchanged by the exchange (ETF).
Kiyosaki said that even the ETFs do some classes in possession More accessible to investors And lowering the barrier to entry, the investor does not physically hold the underlying owner. She is write On Friday:
“An ETF is like having a picture of a gun for personal defense. Sometimes it’s better to have real gold, silver, bitcoin, and a gun. Learn the differences if it’s better to have real and when it’s best to have a role.”
In May, he told investors in Ditch “Fake Money” for bearer assets such as BTC, gold and silver to prevent the effects of inflation and the US dollar decline.
Kiyosaki’s comments reflect the problem of the age of financial institutions that release paper claims to the hard assets they can hold but may not really have liquid properties.
However, when the institution’s trust is shaken, be it due to rumors, a financial shock or evidence of inefficiency, investors can rush to withdraw their money at the same time. Sudden advances in withdrawing are known as Run Run. If the institution is lacking in enough liquid reserves to meet these requests, it can quickly spill in a crisis, which potentially results in the collapse.
Related: ‘Rich Dad, Poor Dad’ May -Set warned Bitcoin ‘Bubble’ may explode soon
ETFs have a long track record of integrity, concerns are unfair, says ETF analyst
Senior Bloomberg ETF analyst Eric Balchunas has told Cointelegraph that ETFs have some of the most stable security guarantees against this type of fraud due to the separation between those who provided the ETF and carers who hold the underlying ownership.
https://www.youtube.com/watch?v=2SONEEG6WC8
“The ETFs are legal that the properties need to be placed with the guardian. Thus, all ETF shares are connected to actual Bitcoin; it is a one-for-one ratio, no role,” Balchunas said.
“I think in the crypto world, there is suspicion in the traditional financial world, and I understand that,” Balchunas told Cointelegraph. However, the ETF sector is a “30-year industry, and it is a clean industry with a great reputation,” he said.
Balchunas said ETFs could be a safer stakes for wealthy bitcoiners, as self -make them Wrench attack targets or ransom attempt made by violent criminals.
Magazine: Danger signs for Bitcoin as retail that left it in institutions: Sky Wee
