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About any business that has invested in Bitcoin thinks that the cryptocurrency is an emerging store of value. One to give a fresh outlook on the asset class, though, is Man Group CEO Luke Ellis, who recently made a fascinating counter-argument. According to CNBC, Ellis said,
“I see it [Bitcoin] as a trading instrument, not a thing that you think of as a long-term asset allocation play. I see it as a trading instrument, so we trade around it and try to provide some liquidity into the market.”
In addition, Ellis went on to state that he did not see any reason why businesses should keep Bitcoin on their balance sheets. Finding it “confusing,” he said,
“It’s confusing what the business is relative to speculation. I don’t think companies are supposed to speculate with cash balances.”
It is worth remembering here that business giants such as Tesla and MicroStrategy have made substantial Bitcoin investments over the past few months, with some analysts suggesting that more firms will soon follow suit.
Alas, it would seem to be just one part of the case. According to a survey conducted by Gartner Inc. in February, most financial executives are not intending to invest in the commodity this year. The survey included CFOs and finance executives, out of which 84% of respondents said they would not buy Bitcoin as an asset citing financial risks due to uncertainty.
Any of the commodity critics think of Bitcoin as a highly risky asset. This include Secretary of the Treasury, Janet Yellen, who recently said that Bitcoin is also “highly inefficient for purchases.”
And yet, market bulls continue to make their case for the commodity, particularly when it comes to bitcoin being digital gold. MicroStrategy CEO Micheal Saylor also estimated that 7-8 billion people would soon have a “digital gold bar” on their phone that they would use to store their “life savings.” Meanwhile, Anthony Scaramucci, who is uniquely based on Bitcoin, plans to turn people from crypto-naysayers to hodlers.