Financial analyst Gary Shilling says that Bitcoin is a “great Ponzi scheme”
In contrast, a younger generation of technology billionaires such as Twitter CEO, PayPal co-founder and technology risk capitalist Tim Draper rely on Bitcoin’s power and value.
Financial analyst Gary Shilling said his New Jersey-based investment firm, A. Gary Shilling & Co., is shorting Bitcoin because it is “a kind of big Ponzi scheme.”
Shilling told CNBC he is concerned about the opaque nature of the cryptography industry. Specifically, he is concerned that the identity of Satoshi Nakamoto, the inventor of Bitcoin, has never been revealed. The veteran investor is also skeptical of the claim that there is a fixed supply of the cryptocurrency. “There is supposed to be a limit there, but where is written in stone that can not be increased?” Shilling asked.
And, of course, the electricity produced by the miners trying to solve these algorithms is simply extraordinary. “I am not a believer in the black boxes”
Shilling is a notorious cryptic skeptic. In October 2017, he admitted that he does not understand bitcoin and rejected it as a “black box” (that is, a complex investment model).
“I simply distrust things that are not transparent,” Shilling said at the time. “If I can not understand, I do not want to invest in that.”
Gary Shilling has not changed his mind and is determined to continue thinking that the cryptocurrency is a scam that will not be much in the long term. Shilling said that Bitcoin fails as a currency because it lacks three fundamental requirements of a legitimate currency:
_ It is not a reserve of value.
_ It is not a means of exchange.
_ It is not universally accepted.
“We looked at this and said: ‘Let’s see Bitcoin compared to the requirements of a currency,'” he reasoned. “A coin has to have a store of value. With the volatility in bitcoin prices, I do not think it has a storage value. “
Shilling also said that the BTC fails as a means of exchange. “If you want to get to the head of the line in the bitcoin trade, you have to pay,” he said.
Finally, he said that bitcoin is not universally accepted, so for him, the sole purpose of bitcoin are illegal activities such as money laundering.
“All the requirements you normally have for a currency, you simply do not have,” Shilling said. “The only legitimate use that occurs to me in bitcoin is the type of transactions outside the books, the transactions of the underworld. I just do not see a legitimate use. It’s a game.”
Shilling echoed the anti-cryptocurrency sentiments of billionaires Warren Buffett and Bill Gates, who expressed a similar skepticism toward virtual currencies.
In May 2018, Buffett called Bitcoin a “rat poison” that only attracts “charlatans.” Similarly, Gates said that the crypts are a crazy and speculative game.
Young billionaires in favor of cryptos
In contrast, a younger generation of technology billionaires such as Twitter CEO Jack Dorsey, PayPal co-founder Peter Thiel and technology risk capitalist Tim Draper are confident that Bitcoin will eventually displace all other currencies.
In fact, Draper is so optimistic that he has set a Bitcoin target price of USD $ 250,000 by 2022. Despite the recent market crash, Draper maintains his exuberant prediction.
Draper, one of the first investors in Skype, Tesla and Hotmail, believes that Bitcoin will be bigger than the three combined because it says it is a revolution that exceeds the Internet.
“This is bigger than the internet,” said Draper. “It is bigger than the Iron Age, the Renaissance. It is bigger than the Industrial Revolution. This affects everyone and will be affected in a faster and more prevalent way than you have ever imagined. “
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.