Peter Thilo Hasler definitely expects the bitter end. In order to avert this, cryptocurrencies would have to establish themselves as a store of wealth or currency. In his opinion, that is not happening, as he reveals in an interview with Business Insider. As a store of wealth, the course is far too volatile.
The financial expert is convinced: “We will see even faster price falls in the future and in ten years nobody will be talking about cryptos anymore. Just as we shake our heads today when we read what was paid for tulip bulbs in the 17th century.”
Hasler sees cryptocurrencies as somewhat similar to stamp collections, which have no value but a price that depends on sentiment and new information that cannot be predicted. With the digital coins, he even goes one step further: “If you look closely, they even have a negative value, which is fed by the enormous energy consumption”.
Cryptos lack a key feature of currencies: the store of value function. “If cryptocurrencies split into thirds in a year, it will become apparent that they do not behave like normal currencies.” In addition, numerous technical hurdles would make cryptocurrencies unsuitable for everyday use.
However, he makes an exception to his negative outlook for cryptocurrencies for one area: stablecoins such as Tether, whose price is linked to a stable reserve asset such as the US dollar. They certainly have a right to exist. “For example, they could help to process payments from abroad that are processed through banks faster and cheaper.”