320 Interactions, 2 today
Speaking with Financial News today, Mobius basically compared investing in bitcoin to a casino operation. He posited that the cryptocurrency’s upsurge is a “casino operation based on all sorts of rumors and speculation”. The veteran investor further noted that there is no reliable information that can be used to forecast the next move that bitcoin will take as the asset does not follow any particular pattern.
“Trying to predict the price of Bitcoin is a loser’s game.”
Not being able to predict the price of bitcoin falls in line with the notorious volatility that the crypto-asset is known for. In other words, the bitcoin price does whatever it wants. Case in point, back in March, bitcoin nosedived 50% in a single day before quickly recovering in the following months. After the 2020 U.S presidential elections came to a close, bitcoin rallied close to its $20,000 all-time high. The cryptocurrency has since pulled back to the $17,000 level.
Nonetheless, high-net-worth investors, multi-billion-dollar companies, and funds are seemingly not scared of the volatility. In fact, they are jumping on the bitcoin bandwagon without hesitation. Veteran investors Paul Tudor Jones and Stan Druckenmiller have declared hyper bullish stances on the flagship cryptocurrency this year, while companies like Square, MicroStrategy, and Square and other companies dipped their fingers in the bitcoin basket.
Yet, Mobius continues to bash bitcoin. He, in fact, has a track record of throwing shade at the king of cryptos. For instance, he stated back in 2017 that bitcoin is more of a religion rather than a currency.
Last year, Mobius said bitcoin is not yet proven as a safe haven as it is backed by mere faith. He argued that the world instead needs a gold-backed cryptocurrency.
“If there is a cryptocurrency that is really backed by gold and there is a meaningful agreement and some kind of modern thing connection, then this could be quite interesting.”
Doom-and-Gloomers Are Euphoric During Market Pullbacks
As expected, the voices of bitcoin skeptics often become louder during market downturns. Besides Mobius’ comments which come shortly after bitcoin plummeted to $16,300, other bitcoin critics have also dashed in to tell it as they see it.
Just two days ago, bitcoin naysayer Peter Schiff, the CEO of Euro Pacific Capital, tweeted his usual pessimism about bitcoin, claiming that the bitcoin bubble was about to pop.
Fellow BTC critic Nouriel Roubini also slandered the cryptocurrency in a lengthy Twitter tirade on November 26. Roubini went as far as to say that bitcoin has no fundamental value or utility, further likening it to a “rigged illegal casino”.
“Investing in BTC is equivalent to take your portfolio to a rigged illegal casino & gamble; at least in legit Las Vegas casinos, odds aren’t stacked against you as those gambling markets aren’t manipulated the way BTC is. Instead, BTC is manipulated heavily by Tether & whales.”
The one thing the bellwether cryptocurrency is not short on is detractors.