Michael McGlone, chief commodity strategist at Bloomberg Intelligence, highlighted increased risks in the cryptocurrency market, especially regarding Dogecoin and other altcoins.
McGlone's Analysis of Cryptocurrencies
McGlone noted that there are about 2.4 million so-called cryptocurrencies in the market, many of which he referred to as 'Bitcoin wannabes'. He believes that Dogecoin, with its $68 billion market capitalization, lacks the fundamental characteristics of Bitcoin. McGlone compared this expansion to the dot-com era, suggesting that most of these cryptocurrencies may similarly collapse over time.
Critique of Unlimited Supply Cryptos
McGlone's critique also targeted what he labeled as 'unlimited supply cryptos', including Dogecoin and other altcoins. He highlighted that this is a significant disadvantage compared to Bitcoin, with its 21 million supply cap. The strategist's analogy with the dot-com bubble only strengthens his concerns. According to McGlone, the coming generations may look at the over 200 meme coins and many smaller altcoins in the same way.
Peter Brandt's Perspective on Investor Risks
Renowned financial trader Peter Brandt echoed these concerns. In a recent post, he stated that speculative digital assets pose significant risks to investors. According to Brandt, most investors employ high levels of leverage to seek short-term profits in altcoins and meme coins. He warned that in case of a market correction, Bitcoin may lose half of its value, and altcoins may lose up to 90% of their value.
The critique and analysis presented by Michael McGlone and Peter Brandt accentuate current risks in the cryptocurrency market, particularly highlighting investor dangers associated with meme coins and altcoins.
