Bitcoin Being Fueled by 'a Class of Really Stupid Speculators' Expert Claims

Bitcoin, the digital anonymous crypto-currency, is due to crash and burn as a result of speculators, claims David Stockman, President Ronald Reagan's former director of the Office of Management and a relentless Wall Street bear.

"It's basically a class of really stupid speculators who have convinced themselves that trees grow to the sky," he told CNBC's "Futures Now" last week. "It will burn out in a spectacular crash. All of these latter-day speculators will have their hands burned to a crisp, and they will learn the proper lesson."

Stockman blamed the Federal Reserve and central banks for creating the hype surrounding the stock and cryptocurrency markets.

"What we really need to do is not think these are regulator problems, but understand they're monetary problems," he said. "It's an irrational, overheated market like never before."

Close to 40% of all online gambling transactions for those businesses operating in so-called "grey" or restrictive markets are now via some form of crypto-currencies as these companies invest in educating their exisiting customer base as well as those now joining.

Now accepting most forms of crypto-currencies

Bitcoin craze made up of ‘really stupid speculators,’ David Stockman warns from CNBC.