Buying a bank with bitcoin is such a fear

The share price of Deutsche Bank, a Frankfurt-based multinational investment bank, has continued to fall over the past five years without any signs of recovery. Well-known cryptocurrency fund manager Anthony Pompliano said it would be interesting if people could raise enough bitcoin and buy the bank.

Bitcoin

52% stock price collapsed in five years

The current market value of Deutsche Bank is just under $14 billion. As of press time, its share price was $6.77, a drop of 5% in the past five days, setting a new record low.

Analyst Max Keiser said last year:

"The key to the current bubble collapse may be that Deutsche Bank declared bankruptcy. This will be a falling domino, triggering another round of Lehman-style market crash."

If this doesn't sound important, then take a look at the overall data. Since the beginning of 2019, Deutsche Bank's share price has fallen by about 17.5%.

Looking back over the past year, the bank's share price has fallen by about 39%. In the past five years, Deutsche Bank's stock has plummeted from $38.74 to its current level, a drop of about 82%.

Even more worrisome is that the overall trend of the bank's share price is very obvious – it has not shown any signs of recovery in the past five years.

How about buying this bank with Bitcoin?

The poor performance of Deutsche Bank's share price has not been ignored. Anthony Pompliano, co-founder of Bitcoin supporter and cryptocurrency hedge fund Morgan Creek Digital, commented on the matter.

“Today, Deutsche Bank’s market capitalization is only $14 billion, and its share price is plummeting. It would be interesting if we could raise funds to buy this bank that was on the verge of bankruptcy and reinvigorate it through Bitcoin. More crazy things have happened."

Currently, $14 billion accounts for about 10% of the market value of Bitcoin. However, considering that Deutsche Bank's share price and BTC's current trend are different, this fund may not be worth anything over time.

But even if it works, the question is whether it is necessary to do so. Of course, this may be an interesting news, but beyond that, it doesn't seem to make any sense.

Interestingly, there is a comment under Pompliano's Twitter that summarizes all of this:

"When designing a space rocket, you don't need the Wright brothers."

The Wright aircraft designed and built by Wright Brothers was the first aircraft to weigh more than aerodynamics. Invented in 1903, it was the first aircraft to be heavier than air and could continue to fly under the pilot's operation.

However, the German banking giant does not like Bitcoin. In 2017, Ulrich Stephan, chief strategist at Deutsche Bank, said cryptocurrency was an adventure because of its volatility and lack of regulation.

Ironically, the bank’s headquarters was raided in 2018 because it suspected it “may help customers set up offshore companies in tax havens”.