[ad_1]
-
Veteran economist David Rosenberg says buying Bitcoin is more like gambling than investing.
-
Stocks, bonds, cash and commodities are much easier to value than cryptocurrencies, he says.
-
According to Rosenberg, Bitcoin is volatile, as evidenced by the price movements following last week’s SEC decision.
Bitcoin and other cryptocurrencies are so volatile and difficult to value that buying them is more like gambling than investing, says David Rosenberg.
Stocks are claims against a company’s future cash flows, and bonds and savings accounts pay interest, while products have industrial uses and demand can be modeled using economic data, Rosenberg Research says. director said in a memo Monday morning.
“These are real,” Rosenberg wrote. “Do you believe in cryptocurrencies and want to get rich?” Then win your stock in the lottery. Seriously, grab your grip. ”
The former chief North American economist at Merrill Lynch has argued that Bitcoin and other tokens are an example of the “Great Fool” theory at work. In other words, people don’t buy them because they have intrinsic value, they buy them because they want to make a profit by selling them to someone more stupid.
Rosenberg’s accusations came after U.S. regulators approved nearly a dozen spot Bitcoin ETFs last week. The veteran economist noted that the price of the most popular cryptocurrency had fallen from a two-year high of $49,000 last Thursday morning to $44,000 by Friday night.
“Who needs this much instability in their life?” he asked. “Not me, that’s for sure.”
Rosenberg’s cryptocurrency bashing echoes criticism he made to Business Insider last year. He emphasized that the price of the token could fluctuate by 20% or 30% within a few weeks.
“Unless you’re a gambler, why should you introduce it to your portfolio?” he asked then.
He also emphasized the difficulty of valuing assets that, unlike businesses and bonds, do not provide returns to investors.
“I don’t know what to make of it,” he says. “So, as they say on ‘Shark Tank,’ ‘I’m gone.'”
Read the original article on Business Insider
[ad_2]
Source link
