Nick Colas was reportedly the first analyst on Wall Street to agree to cover Bitcoin as well as to cover it consistently. Now it appears that he feels that it hasn’t achieved enough utility to warrant it being a consistent buy.
Reportedly, the firm that he is a co-founder of, DataTrek Research, is getting a lot of calls from would-be crypto investors. In response, Colas and his team are advising people not to buy Bitcoin as of now.
The reason for them giving this cautionary advice probably isn’t the one that comes to your mind first. Colas doesn’t think Bitcoin is worthless or that it’s just a scam. He’s not on board with the Warren Buffets of finance but he’s also not on board with the Winklevoss twins, either.
He begins his explanation for exercising caution by asserting that Bitcoin was a bubble when Bitcoin futures launched and we eventually ended up seeing a $20,000 Bitcoin price.
Colas adds that now, there are relevant numbers that can be said to show a decline in interest in cryptocurrencies. Still, the primary metric that he uses for evidence for this is Google searches for cryptocurrencies. Any sort of popular search or social media related metric is shaky at best, given that in such measurements, there’s a lack of direct connection between Google searches and buying.
On top of this, he adds growth in Cryptocurrency wallet usage to his reasoning but as many of us that are embedded in the space know, even dedicated users aren’t necessarily trusting wallets that can be tracked in any way. On the flip side, there does seem to have been consistent growth in the usage of hardware wallets like the Ledger wallet.
All in all, anything coming from Wall Street isn’t always just what we call “FUD,” but it should be taken with a grain of salt. Wall Street firms have a vested interest in holding the Crypto-industry back unless they are already invested in it.
By: BGN Editorial Staff