Legendary investor Mark Mobius launched yet another scathing attack on Bitcoin – and cryptocurrencies in general – during his appearance on CNBC’s Squawk Box earlier Thursday, comparing them to gold as many have before.
During his interaction at the premarket morning show, Mobius suggested that for Bitcoin to have any legit intrinsic value, it must be backed by gold. Predictably, his assessment hasn’t gone down well with proponents of the asset class.
The Faith of Younger Generations Isn’t Enough for Bitcoin
Squawk Box anchor Joe Kernen asked Mobius whether or not he believed Bitcoin has any “intrinsic value.” The famed investor responded by subtly implying he sees no such value as of now.
He then went on, adding that things could be quite interesting if there were a gold-backed cryptocurrency with “some kind of monitoring of this connection.”
Kernen, at that point, interjected Mobius by drawing his attention to how some people believe that the rich potential of blockchain technology itself adds inherent value to the asset class. Furthermore, the anchor asked where most fiat currencies draw their intrinsic value from considering that almost none of them are backed by gold anymore.
Related: Looking to buy and sell Bitcoin? Check out our guide on the best cryptocurrency exchanges for trading Bitcoins.
In response, Mobius said (with a chuckle) that people have faith in the US Dollar because “they know with the dollar in the hand, they can buy something.” It’s fine if that’s how people feel about cryptocurrencies too, he added.
However, Mobius seemed to be of the view that younger generations who have faith in the internet are usually the same group to have put their faith in the decentralized digital economy. This, according to him, could be viewed as a “risky” situation considering that the asset class derives its legitimacy from the faith of enthusiasts and investors rather than any intrinsic value.
Blockchain Is Also “High Risk”
While the cryptocurrency space has always had its fair share of critics, most of them tend to speak favorably about blockchain, the underlying technology the powers the asset class. Mobius, however, was not ready to hold his punches on that front either and went on stating that blockchain technology is not as invincible as many seem to believe.
To quote the founder of Mobius Capital Partners:
“A lot of people say blockchain can’t be broken into. No, it can be. Anything that has been created by man can be broken into, and it could create a big crisis. So I think we have to be very careful about blockchain.”
Worth noting here is that Mobius has never been all too kind with the concept of decentralized digital assets. However, he appeared to have flip sides earlier this year in May when the veteran investor conceded that “Bitcoin and other currencies of that type are going to be alive and well.” (Although, he never said that he would personally invest in Bitcoin.)
Fast forward a couple of months to Aug 2019, and he retreated to his original hostile posture by saying that he preferred to call Bitcoin and its ilk the “psycho currencies.”
What’s your take on these comments by the veteran investor? Do you think his concerns are real? Or is he is just too old school to have an unbiased view on the real potential of cryptocurrencies? Do share your views in the comments below.
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