A. Gary Shilling, an American financial analyst and an investor who is also the president of A. Gary Shilling & Co., Inc. said that he doesn’t believe in Bitcoin and even compared it to a bubble.
Bitcoin just celebrated its 10th anniversary of the Genesis Block on January 3, 2019, and people in the community are hoping 2019 will be much better than 2018 where Bitcoin’s price declined from its all-time high to a yearly low of $3,122. Bitcoin is currently trading at $3,830.
The bear year of 2018 caused the market cap of cryptocurrencies in general, to depreciate by a massive ~$700 billion. The market cap of Bitcoin collapsed by a whopping ~$250 billion. Nonetheless, Bitcoin and cryptocurrency believers are staying strong as fundamentals are growing every day.
However, Bitcoin and other cryptocurrencies attract a lot of speculators and non-believers around it. Gary Shilling, a legendary investor gave his views on Bitcoin, in a video posted by Business Insider. Shilling said:
“It’s a black box and I’m not a believer in black boxes.”
Although Bitcoin is a better form of an investment than most of the existing forms of investments, shilling compared Bitcoin to black box because black boxes are usually opaque and it is complicated for him to invest in.
He went on to speculate it to be a bubble and compared it to the South Sea Bubble of the 1700s, where the price of the stock of The South Sea Company of Great Britain rose dramatically before it collapsed.
In addition, Shilling stated:
“I’m just very suspicious of things that are not transparent. If I can’t understand it, I don’t want to invest in it.”
Although this statement of Shilling sounds biased, Bitcoin’s underlying technology, ‘blockchain’, makes it so that the data in the blocks are available to the public for viewing, hence making it transparent.
Majin, a Twitter user commented:
“Let’s talk to someone that loves crony capitalism for their completely biased opinion.”
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