The host of popular crypto analysis and market commentary show InvestAnswers claims that privacy-focused altcoins will likely be hammered by the impact of government regulations.
Speaking in a recent interview, the host of InvestAnswers explained that he is skeptical about investing in privacy coins, which he believes are going to come under greater scrutiny by regulators.
The crypto analyst argued that privacy coins, which allow users to carry out transactions with anonymity, will require a substantial amount of institutional money in order to succeed. He said that this sector of crypto could potentially benefit from venture capitalists (VCs), whom he noted had played a role in the creation of other technological behemoths, such as Microsoft, Tesla and Hewlett-Packard.
As reported by The Daily Hodl, he said,
These are the people behind all these successful companies, and the problem with secret coins is they will always be viewed under a very high regulatory scrutiny, and therefore, institutional investors will not invest.
InvestAnswers’s host admitted that despite the need for privacy-based cryptoassets, this is the subset of altcoins that would likely be the “first things that are going to get quashed,” by looming government regulation. He argued that there was no price upside to the risk imposed on privacy altcoins, and ultimately concluded that he “wouldn’t touch it.”
As for Bitcoin, he had this to say:
“Like with the Bitcoin conference going on right now, I think people are expecting huge breakthrough news and if that doesn’t happen, there’ll be a lot of disappointment. I also see a lot of money flow into different assets. Bitcoin isn’t the big black hole. It is the hardest, most pristine asset on Earth, but there’s so many distractions now to place your money.“
Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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