Allianz Global Investors: 'Bitcoin is Worthless'
Bitcoin is worthless, says Allianz Global Investors, who believe that the bubble is about to burst. Even if blockchain technology could bring significant benefits to investors, Europe’s biggest insurer appears dead set against the cryptocurrency. Scroll Down for More...
Managing some 500 billion in euro, Allianz Global's head of global economics and strategy Stefan Hofrichter offered his thoughts on Bitcoin this week.
“In our view, its intrinsic value must be zero,” Hofrichter wrote in a recent web post. “A bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream.”
While one could make the same argument about gold, the yellow metal has been widely accepted as a store of value for more than two-and-a-half thousand years -- compared to less than a decade for Bitcoin, he said.
From Bloomberg News:
In addition, the world’s largest cryptocurrency “ticks all of the boxes” of the essential criteria for any asset bubble, including overtrading, “new-era” thinking and rising leverage, he wrote. Bitcoin mania is a textbook-like bubble, “one that is probably just about to burst.”
Bitcoin traded 0.7 percent higher at $9,126 as of 2:45 p.m. Tokyo time Wednesday March 14, 2018. As of 10 am EST, the price of Bitcoin had dropped to $8,630.
Bitcoin Cash had fallen from a high of $1072 yesterday to $1000 by 10 am EST Wednesday (or just over 3.42%)
- Aaron Goldstein, Gambling911.com
