Is Bitcoin a Bubble? These Investors Seem to Think so

Cryptocurrency is seen as an asset class that is like a bubble by the majority of investors and traders according to a recent Cayman Alternative Investment Summit (CAIS) survey.

The researchers in the survey interviewed about a hundred alternative investors and fund managers in order to create the survey report at the sixth annual conference of CAIS from 6th Feb - 9th Feb.

The results of the survey show that 45 percent of the investors that took part believe that as an asset class, cryptocurrency is something that represents a bubble. Furthermore, 20 percent of the participants believe that US equities are also like that of a bubble while another 19 percent and 16 percent of those who took part in the survey have the same belief regarding the leveraged loan market and private credit respectively.

In addition to this, the survey went onto ask respondents of the survey about new age technology and they seemed to be more excited about automation than blockchain as around 45 percent had more faith on automation and artificial intelligence. In terms of distributed ledger technology, under 40 percent of participants believed that that would be the next big thing.

In terms of institutional and seasoned investment, there is a big difference in the crypto market projection. There are some key figures in the crypto space such as the JP Morgan CEO Jamie Dimon who was once sceptical about Bitcoin, calling it a fraud, but now the banking giant is working on its own cryptocurrency, JPM Coin. Whereas the infamous Warren Buffett has previously called the leading cryptocurrency like ‘rat poison’. On the other hand, there are people like Mike Novogratz who are well-known bulls for Bitcoin and the like.

Novogratz has recently given his predictions for the medium term price of Bitcoin which he believes will be set at $8,000 and said that “we’re not going to bubble back up.” On the other hand, Buffett recently spoke to CNBC and said “you can stare at it all day, and no little Bitcoins come out or anything like that. It’s a delusion, basically.”

An earlier survey that was conducted at the Davis Summit in Switzerland the interest of the insittutinoal investors in blockchain as 26 percent of the participants believed that big listed firms will have to start proactively reporting on their ideas and future plans around blockchain.