One of America’s most historic stockbrokers has dramatically thrown open its doors to digital currencies. The surprise move by EF Hutton will cause a stir across the world’s banks which have largely shown resistance to working with cryptocurrencies.
The 114-year-old financial institution sees significant potential and value and believes the space will go mainstream in the next two years.
The announcement is significant due to the weight of the organisation involved – when someone of EF Hutton’s calibre talks, people sit up and take notice. It’s now likely that other financial linchpins will cast their hesitancy aside and follow suit.
The time is now
EF Hutton Director of Research, Christopher Daniels, says the time to invest in top-rated cryptocurrencies is now.
“Keep your eyes open because EF Hutton is about to get deeper involved in crypto,” he comments. And that’s for no other reason than “because we see cryptocurrencies that have great value and sustainable growth – they have a future.”
The stock brokerage firm is one of the largest, most respected and experienced in the United States. It’s been around since 1904 and has gradually been dipping into the cryptocurrency sector. It has its own beta-stage crypto called the MeggaCoin which is in the beta stage, as well as other projects in the works.
Bitcoin Cash is one of the few cryptos to invest in
Daniels gave Coin Rivet a sneak preview of his firm’s in-depth analysis of the crypto market.
“Bitcoin Cash is one of the best to invest in currently,” he says. “We’ve given Bitcoin Cash our top five-star rating,” adds Daniels, who according to the EF Hutton website, is also co-chairman and CEO of HUTN and CEO of Megga.
Last month, the crypto market capitalisation lost almost 12% dropping from $253 billion to $237 billion. From the end of last year, when Bitcoin reached $20,000, to June of this year, the market capitalisation lost a whopping $80 billion.
The correction has reached its low
But Daniels says the correction in the crypto market has reached its lowest point and, therefore, all those interested in crypto, whether seasoned investors or otherwise, should now see this as the time to get involved.
However, he warns there are many risks as the market remains volatile and mostly sentiment-driven. “The cryptocurrency market is currently driven mainly by sentiment, although there are a series of other factors that intervene in price movements of cryptocurrencies,” he explains.
“There are thousands of cryptocurrencies out there, but only a few will survive, and those are the ones worth investing in as long as they have our four or five-star rating.”
Daniels refused to hand over too much information because, of course, his firm is investing considerable resources in producing periodic crypto reports to tap into the $19 billion research industry.
Cryptocurrency will continue to grow
“We see growth in the cryptocurrency market, and yes, the fact that we are investing resources in producing unbiased and dispassionate research and analysis like no other out there gives an indication that we believe crypto to be a digital asset worth investing in,” he confirms.
“Cryptocurrency will become mainstream by 2020,” he predicts. “I don’t believe it will substitute fiat, however, at least not in the next 10 years but you will see many governments rolling out their own cryptocurrency in the following months and years”.
When asked if the financial giants feel threatened by crypto, Daniels says no. “They simply don’t participate in the sector because of a lack of imagination and the will for change. They are usually more reactive than they are proactive.”
Obstacles to going mainstream
He explains that today’s most significant obstacle to cryptocurrency becoming more mainstream is “the mindset and culture of people in developed countries”. The lack of regulation is also a stumbling block. Clarity is required as well as proper governance, he believes.
EF Hutton plans to bring a massive wave of people into crypto through education and other projects that Daniels promised to reveal to Coin Rivet soon.
In the meantime, don’t forget to equip yourself with proper analysis and information before investing and watch out for “highly questionable analysis that lacks quality and credibility as it is put out there by people with invested interest in one crypto or another – their analysis is biased, and many others simply lack vision and expertise”.
Those who continuously trash cryptocurrencies, saying they’re worth nothing, may want to reconsider given that crypto is the fastest growing asset in the market and will continue to be in the foreseeable future, concludes Daniels.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.