Bitcoin Prediction: Hear from Charlie Munger, Cathie Wood, Buffett and Soros
Bitcoin, the world's first cryptocurrency, now has a market cap of around $1 trillion, which only took it 12 years. While tech stocks, including $Microsoft(MSFT.US$ , $Apple(AAPL.US$ , $Amazon(AMZN.US$ , and $Alphabet-A(GOOGL.US$ , took about 33 years to surpass a $1 trillion market cap on average.
Now, Bitcoin sits around $54,000, up from $8,800 one year ago. The market has 2 distinct views on the highly volatile cryptocurrency.
A "rat poison" or "digital gold"? Let's see who the supporters are, who the skeptics are, and what investment gurus, such as Charlie Munger, comment on Bitcoin.
Bitcoin Supporters
Ark Invest's Cathie Wood: Bitcoin's long-term outlook is brightening
Cathie Wood, the CEO and chief investment officer of Ark Invest, told during an interview in February that cryptocurrency’s catalysts were adding up.
“We expected institutional interest to pick up this year and it certainly has, but the way in which it’s picked up has surprised us,” she said. “I don’t think we ever thought there would be broad-based substitution of bitcoin for cash on corporate balance sheets, so we find that very interesting.”
In March, Wood said she believes cryptocurrencies could stabilize and eventually behave like bonds.
A 60-40 portfolio that’s split between stocks and bonds may look more like 60-20-20, Wood said. That is, 60% in equities, 20% in bonds and 20% in cryptocurrency.
George Soros changed his view on Bitcoin
George Soros, the man who’s famous for pocketing $1 billion by betting against the British pound in 1992, was skeptical about Bitcoin but now has changed his opinion.
According to Bloomberg, Soros has given his fund manager the internal permission to start trading cryptocurrencies.
"We think the whole infrastructure around crypto is really interesting, and we’ve been making some investments into that infrastructure—and we think that is at an inflection point," Soros Fund Management's Dawn Fitzpatrick said.
Moreover, Soros Fund Management invested in crypto data provider Lukka and joined $200 million investment in a Bitcoin financial services company NYDIG with $Morgan Stanley(MS.US$ .
Bitcoin Skeptics: Extreme volatility and uncertain intrinsic value
Charlie Munger: “To me, it's just dementia”
Charlie Munger, Buffett’s right-hand man, described Bitcoin as “noxious poison”.
In February, Munger was asked whether he thought it was crazier for bitcoin to hit $50,000 or for Tesla to reach a $1 trillion fully diluted enterprise value.
“Well I have the same difficulty that Samuel Johnson once had when he got a similar question, he said, ‘I can’t decide the order of precedency between a flea and a louse,’ and I feel the same way about those choices. I don’t know which is worse.”
Warren Buffett blasted Bitcoin as “rat poison squared”
As Warren Buffett doesn’t believe in assets that are unproductive, he has repeatedly criticized Bitcoin as worthless and risky.
"Cryptocurrencies basically have no value and they don't produce anything. They don't reproduce, they can't mail you a check, they can't do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person's got the problem. In terms of value: zero."
"Bitcoin has been used to move around a fair amount of money illegally."
Question for moomooers:
Which would you prefer, stocks, Bitcoin or others? Why?
Source: Bloomberg, Coinmarketcap.com, CNBC
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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DiamondHandsApe : prefer tsla and BTC
CXCXCXCX : nice
Queenlily : Bitcoin rewards but fiat depreciates
. It is an alternative to the stock market's value compensation.
Craig Woods : it's a upper
SiTC : I’m all for a currency that appreciate without me having to crack my head investing in stocks.
Adam Mayhem : A mix of both. Crypto is like buying scratch off tickets, but with better odds. Stocks are more for when I'm old and done working. stocks will always be the woer investment long term, but thay doesn't mean you can't gamble on crypto.
yooniique :
Investing with moomooOP Adam Mayhem: True.
Finding an appropriate balance of assets classes in portfolio is key, but excitement (especially after price hikes) sometimes makes us forget this
Investing with moomooOP 102322657: Exactly.
Everyone needs to have a clear idea of their risk tolerance before investing in stocks, even more so for cryptos.
Investing with moomooOP Queenlily: Haha that’s also a major view in the market:
Not just an investment, but a hedge.
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