Despite Bitcoin taking over the headlines and getting bigger by the day, Jeffrey Gundlach, and investment guru is one of the few who is sceptical about all of the buzz that surrounds this virtual currency. He told CNBC;
“We’re starting to see the big rock of silly season…This is the kind of nutty stuff. The fact we’re talking about it 24/7…If you short Bitcoin today, you’ll make money. Can it go higher? Of course.”
He is adamant that he won’t ever invest in Bitcoin or any other cryptocurrency for that matter for fear that they will some day get hacked. He added;
“I have no interest in this type of maniacal type of trading market.”
Although it seems that Bitcoin is just growing in popularity, you might be surprised to hear that Grundlach is not alone in his scepticism. Janet Yellon, the Federal Reserve Chair declared that she believed Bitcoin to be a ‘highly speculative asset that doesn’t constitute legal tender’. Even central bankers are taking caution as the price has been so unpredictable and surged roughly 17 times in value in this year alone.
“Bitcoin at this time plays a very small role in the payment system…[it] is not a stable store of value.”
Despite surging in price to the highest it has ever been, Bitcoin then slumped by $1,495 on Wednesday, which prompted halt at Cboe, with futures trading paused for two minutes. Cboe Global Markets Inc. can halt trading when the futures fall or rise 10 percent, which is what had happened to Bitcoin.
According to prices compiled on Bloomberg, the price of the largest cryptocurrency by market value fell 4.9 percent to $16,395, after dropping by 8.7 percent. This is in line with the gain of 9.6 percent that we saw on Monday, and minor in comparison to last Thursdays huge 20 percent surge.
Image Source: Flickr