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Credit Suisse CEO: Bitcoin is the "very definition of a bubble"

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At a time when bitcoin reached a new record around $ 7,500 and catapulted the market capitalization of cryptocurrency above For the first time in history, Credit Suisse CEO Tidjane Thiam says that this is not a fan of cryptocurrency because he stated that it was the "very definition of a bubble" at a press conference in Zurich.

The CEO has been cautious because the interest in bitcoin could eventually calm down. He noted that people are currently buying cryptocurrency while waiting for a price hike that will help them earn money, not as a store of value, which means that it will be cheaper. is a bubble. In particular, he declared:

"From what we can identify, the only reason today for buying or selling Bitcoin is to make money, which is the very definition of speculation and the very definition of A bubble. "

Tidjane Thiam added that bitcoin currently presented a number of challenges and expressed concern about its anonymity, as it is particularly problematic for financial institutions that, given the potential risks of money laundering, may not involve cryptocurrency. He added:

"Bitcoin presents a number of challenges.The first of them is really anonymity (…) I think most banks in the current state of the regulations have little or no desire to involve themselves in a currency that has such challenges against money laundering.

Analysts estimate that more institutional investors will enter the cryptocurrency ecosystem, since one of the largest derivatives exchanges in the world, CME Group, has recently decided to launch bitcoin futures.

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Given his words, Thiam now joins a list of bankers and Wall Street executives who believe that Bitcoin is a bubble. Among them, Berkshire Hathaway, CEO and billionaire investor, Warren Buffet, who warned that there was a "real bubble" in bitcoin because, according to him, cryptocurrency can not be valued because is not a valuable producer asset.

Earlier this year, JP Morgan CEO Jamie Dimon also criticized Bitcoin as "fraud" and said he would fire anyone in his financial institution. Later, Dimon declared that cryptocurrency was "worthless" before taking a third blow to cryptocurrency and its investors, stating in particular that anyone "stupid enough to buy [bitcoin] will pay the price."

Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, also said that bitcoin is a bubble because it meets his company's criteria, in part because some investors buy parts to sell at a price. higher. and because of its volatility.

On the other hand, some are not as dismissive as Bitcoin. Goldman Sachs' CEO, Lloyd Blankfein, recently told Bloomberg that he was not ready to "poop" cryptocurrency, despite some "level of discomfort". "as is the case for all that is new. Morgan Stanley's CEO, James Gorman, also recently said that bitcoin is "more than a mere fashion" that "is not inherently bad".

Featured image from Flickr / Africa Progress Panel.