The number of opponents of cryptocurrencies among aces wall street continues to grow with the same rate at which bitcoin is conquering new peaks. Obviously, an independent currency does not fit the canons of the old economic school, and its growing popularity seem real «undermine».
The magnate of wall street, John Bogle (John Bogle) told investors to keep their money away from the industry of bitcoin. John Bogle, legendary investor and founder of the Vanguard Group is an investment firm that manages 4.5 trillion in international assets expressed his disdain for bitcoin at a time when the price of a decentralized bitcoin has exceeded $ 10,000.
88-year-old former Chairman of the Vanguard Group attended the event at the Council on foreign relations in new York on Tuesday, when party event and asked him what he thought about bitcoin. In comments published by Bloomberg, Bogle said
«Flee from bitcoin like the plague. Am I clear?»
«Bitcoin has no basic profitability,» added Bogle, pointing to bonds, relying on interest, shares in profits and dividends. «There is nothing to support bitcoin, but hope that you sell it to someone for a higher price than you paid for it,» he said.
This year bitcoin grew by almost 1100%, reaching a historic high of 11 $ 400. Bogle is steadfast in his belief that bitcoin price high. However, he believes that the price of the world’s most popular cryptocurrency is still likely to double before will go down dramatically.
«Investing in the digital asset is madness. Bitcoin may be worth $ 20,000, but this does not prove me wrong. Talk when his price will return to $ 100,» said Bogle.
Bogle is just one of the latest prominent figures on wall street, have expressed their skepticism about bitcoin. More on the topic of bitcoin, said the head of JP Morgan Chase Jamie Dimon (Jamie Dimon), who called bitcoin a Scam.
The same opinion former world Bank chief economist Joseph Stiglitz (Joseph Stigliz) — he wants bitcoin was banned.
«Bitcoin succeeds only because of its ability to bypass the law and lack of oversight,» he said in a Bloomberg Television interview. «It seems to me that bitcoin should be outlawed, as it carries no socially useful function.»
However, Stiglitz, who also headed an Economic Council under the administration of President Clinton, said he supports technological innovation in payment systems, but considers that digital money still needs to be established and monitored by the government.
«Let’s get away from paper in the twenty-first century digital economy,» he said.
In respect of bitcoin he also said:
«It’s a bubble that will entertain many with his dramatic rise and fall. Today the value of bitcoin is, what bitcoin will be tomorrow.»
Although Bitcoin is a decentralized network whose members are scattered around the world, Stiglitz seems to think that Washington can easily nip it in the Bud.
«If the government will declare that the reason bitcoin is used – a departure from the laws, they can ban it at any time. And then he’ll fall down.»
Probably the eminent economist too good opinion about the possibilities of the American government. However, there’s a world outside U.S. borders, and many countries do not plan to ban the cryptocurrency. In addition, even in the event of a government ban, cryptocurrencies will remain, and after they fade to keep track of transactions will be much harder than with help. regulated trading platforms.
It seems that Mike Novogratz was right when he said recently: cryptocurrency frighten those who are not ready to transition into the digital world. But to deny the future to come is impossible.