Cryptocurrencies? No thank you! Deutsche Bank advises against Bitcoin

When boomers advise against cryptocurrencies, it will quickly cringe. It is particularly embarrassing when your own share performs worse than some “shitcoin” on the crypto market. Joking aside. Deutsche Bank, or rather its chief investment strategist for private and corporate clients, Dr. Ulrich Stephan, leaves the challenges 2022 reminisce and gives an outlook on possible investment trends in the coming year. According to the financial expert, inflation could “already have passed its peak (USA) or reach it in the near future (Europe).”

This gives the central banks “the necessary leeway […] to refrain from further increases in key interest rates that would dampen the economy,” said Dr. Stephen. Investors should therefore seek their financial salvation first and foremost in low-rated stocks, which offer a veritable entry option.

Bitcoin? D rather not

So far so plausible. Cryptocurrencies like Bitcoin, one suspects, not only do not exist as an investment option, the bankers even explicitly advise against BTC. The largest German credit institution in terms of total assets even spreads anti-Bitcoin campaigns on Facebook. One tile says something like “Cryptocurrencies? Not recommended for long-term wealth accumulation.”

But that’s not all. In a separate post The bank, which was largely responsible for the 2008 financial crisis, clears up so-called financial myths. Also in the crosshairs of bankers: Bitcoin.

This is completely unsuitable as an inflation hedge, since it does not grow anti-cyclically – like gold – but in tandem with the stock market. In fact, that’s true. Only: The narrative of inflation-proof Bitcoin no longer serves any reputable Bitcoiner. One gets the impression that the bank, which, according to reports in the New York Times, allegedly violated anti-corruption laws in 2020, is explicitly setting up a straw man and using it to work on Bitcoin.

Speaking of volatility, Deutsche Bank shares are really not suitable as protection against inflation. Since its all-time high in May 2007, the company’s stock has lost more than 92 percent. This means that the paper performs worse than some shitcoins and, above all, brings significantly less returns than an investment in Bitcoin.

The relationship between the Frankfurt am Main-based commercial bank and Bitcoin is at least ambivalent. After all, the company had forecast a price rally of up to 28,000 US dollars for the key crypto currency by the end of the year. That should be tight.

Chief Strategist Dr. Stephan concludes his financial forecast for 2023 with the words: “Stay critical but also optimistic.” Don’t worry, we will.