Bitcoin has been on a rapid rise, soaring past $70,000 in just a matter of days. This new record high has solidified its position as the largest cryptocurrency in the world. However, despite the increasing adoption of blockchain technology, there are still skeptics who question its sustainability. One such skeptic is Dr. Burton Malkiel, an American economist and author of the book “A Random Walk Down Wall Street”. In a recent interview with TheStreet, he shares his thoughts on the current crypto-craze.
When asked about any investment advice that irks him, Dr. Malkiel responds by pointing out the potential dangers of investing in speculative assets like Bitcoin. He believes that many people may end up getting hurt by pouring their money into this volatile market.
One of the main issues with Bitcoin, according to Dr. Malkiel, is its impracticality as a currency. He humorously asks, “What would I do if I wanted to buy a cup of Starbucks coffee with a currency that’s fluctuating by $2,000 in a single day?” He also highlights the risks involved in using Bitcoin for illegal activities, such as buying drugs or carrying out ransomware attacks.
While he acknowledges that there are potential uses for Bitcoin and other cryptocurrencies, he also predicts that governments will eventually put a stop to it due to the potential for illegal activities. He warns that the hype around Bitcoin will draw in more people, but ultimately, many will end up getting hurt.
In conclusion, Dr. Malkiel expresses his concern about the current state of the market, particularly with regards to Bitcoin. He believes that it is the most “bubbly” and risky investment at the moment, and advises caution for those considering jumping on the bandwagon. Despite the potential for huge returns, he warns that the unpredictable nature of Bitcoin makes it a dangerous game to play.
