Aberdeen Says Cryptocurrency Bubble Will Burst Even If Coins Change Finance
- Venture capital head still sees value in blockchain assets
- Price gains driven by ‘gold-rush mentality,’ Denious says
Why Ethereum and Bitcoin Are So Popular Lately
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Peter Denious, head of global venture capital at Aberdeen Asset Management Plc, said we’re in the midst of a virtual currency bubble, and like all bubbles, it will eventually burst.
That doesn’t mean investors should necessarily steer clear. Aberdeen’s venture capital arm, which has about $1.8 billion entrusted in early stage funds, is considering investing in funds that hold blockchain-based companies and digital coins, Denious said. Still, he said the cryptocurrency boom that’s attracting millions into startups and spurring triple-digit gains in their digital tokens isn’t sustainable.