King of Raw Materials, Dennis Gartman, continues to say that he will not buy Bitcoin, in despite recent news that cryptocurrency has been approved for trading futures on a number of exchanges. Speaking on "Fast Money," Gartman reiterated his view that Bitcoin is in a phase of "tulip mania". and will inevitably appear.
Gartman's expertise in raw materials dates back to the 1970s when he helped several large companies. & # 39; future divisions. He is now producing an Investor Advisory Bulletin called "The Gartman Letter".
The main concern, says Gartman, is the massive volatility to which Bitcoin is often subject. He maintains that putting on the sidelines of something that moves with enormous volatility is extremely difficult and dangerous. He told "Fast Money":
"Bitcoin on a volatile day moves 15% and 20% How can you make a 15% to 20% margin on a Regular base? It's the volatility that scares me. "
Legitimacy or total legitimacy?
However, in a scandalously positive turn, Gartman claimed that the inclusion of Bitcoin futures on the CBOE has given cryptocurrency legitimacy, "but not enough to tempt him into the market . He argued that until cryptocurrency ceases to be a "place where drug traffickers make transactions," it will stay out.
However, many industry insiders disagree about the legitimacy of Bitcoin. In fact, futures trading brings bitcoin legitimacy as an asset class in itself, though very volatile. According to Shai Novik, vice president of Cryptal Holdings AG:
"The initiation of Bitcoin term trading confers a bitcoin legitimacy as an asset class." Bitcoin "was not defined as an asset class Asset managers could now invest as part of their asset allocation strategy, which would constitute a category of assets. highly volatile and unpredictable assets, just like other assets. "