Veteran investor interested in buying Bitcoin against Gloomy Economy
A veteran investor who once called Bitcoin a “real fraud” changed his critical opinions amid a bleak macroeconomic outlook.
Mark Mobius, the founder of Mobius Capital Partners LLP, said in an interview that he would probably buy bitcoin as protection against the Fed’s moderate stance on the economy. Experts in emerging markets maintained the highest cryptocurrency in terms of faith, citing people who, despite being small, trust it.
“If bitcoin continues and grows, then I would probably have to turn to a buyer and participate in this,” Mobius told Bloomberg.
He added that fiat currencies around the world, be it the US dollar, the Chinese renminbi or the euro, also work because of people’s faith in it. That makes Bitcoin no different from any government-backed asset. At the same time, Mobius expressed his disorientation about the real value of bitcoin, admitting that it would be difficult to estimate how much he should pay to buy a bitcoin.
“Unless it’s so widely accepted and valued, then that’s a different story,” Mobius added.
Then and now
The statements seemed to recall what the 82-year-old financial veteran had said in December 2017, before the meteoric rise of Bitcoin to the $ 20,000 level. At that time, Mobius had admitted that the cryptocurrency is driven by faith. But he had no interest in participating in its economy, even if its adoption grew.
The subsequent collapse of Bitcoin in 2018 strengthened the anti-bitcoin views of Mobius. FN London quoted the 82-year-old finance veteran last year and said Bitcoin was, for him, something that “makes tulips look bad.”
“I think Bitcoin is a real fraud, I really do it,” Mobius told Reuters in 2018. “The first thing I do is ask people,” can you explain it to me? Who is executing it? Who controls it? “And nobody can.”
But bitcoin, however, benefited from increased infrastructure and adoption. When falling from $ 20,000 to $ 3,126.68 in just 12 months, the cryptocurrency recovered by more than 275 percent to reach an annual maximum of $ 13,868.44. The uphill movement closely followed a positive statement about bitcoin issued by Mobius in May. The investor said:
“Definitely, there is a desire among people around the world to be able to transfer money easily and confidentially, so I think it will be very much alive.”
Gold and stocks are an even better option
The moderate position of the Federal Reserve sent to the performance in EE. UU., And shows that the rates of bonds with different maturities fall. The measure cemented a grim outlook for the US economy in the long term. At the same time, the benchmark index of the S & P 500 stock market closed at a maximum of 2,995.82 before the independence day holiday, creating a significant divergence between bonds and shares in general.
Recognizing that investors could consider Bitcoin a safe haven, Mobius said that the best place to save money is in gold or in shares. He added:
“If you do not get anything in the bank with these lower rates, it makes sense to have some gold in your portfolio. And I think that’s happening in addition to the fact that the Russians and other Central banks are getting gold. “
The outlook for the traditional finance industry is sending signals that worry and occupy investors, it is likely that the prices of precious metals rise, especially gold, what has been noticed in recent days is that there is a direct correlation between gold and bitcoin, from this point starts a race in prices, we will see results in the coming days. It is waiting for new announcements.
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.