Cryptocurrencies including Bitcoin are becoming more mainstream as an investment. Nevertheless, the main argument for cryptocurrencies is still their highly speculative nature for trading gains as of now.

In our view, they do not serve as an effective portfolio diversifier nor inflation hedge, and the heightened price volatility also limits their usefulness as a haven asset and/or a store of value.

In addition, we cannot ignore the potential regulatory tightening as well as environmental concerns related to cryptocurrencies. As such, we would continue to urge investors to exercise extreme caution when investing in cryptocurrencies.

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