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The finance theoretician and neurologist William Bernstein does not believe that bitcoin corresponds to the same. classic idea of a bubble; however, he claims that he will not "waste his time" on it.
The former American neurologist has turned to writing about investments in the 1990s. Some of his best-selling bestsellers include The Intelligent Asset Allocator ] The Four Pillars of Investment: Lessons for Building a Winning Portfolio, and Rational Expectations: Allocation of Assets to Invest Adults .
Yet, although he does not think that digital currency is showing the signs of a bubble, it remains "suspicious". According to him, it does not match every four points of a bubble, reports CNBC. They are:
- It did not become the main subject of social gatherings;
- People do not leave their jobs to speculate in bitcoin; and
- Skeptics of digital currency do not face anger.
He claims that the only sign of a potential bubble is the fact that there have been extreme price forecasts.
In an interview with CNBC, Bernstein said:
Of the four key areas of investment knowledge – the theory, history, psychology and practices of the investment industry – the lack of historical knowledge is the one that causes the most damage.
According to him, bitcoin has "no intrinsic value", adding that it is "a very bad sign" to see that its price keeps increasing.
Therefore, he stated:
Bitcoin is not something I want to waste my time. Unless [you are] is an expert in blockchain technology and bitcoin, stay away. Do not invest in things [you] do not understand.
His comments join a growing list of critics against the digital currency. The most famous of these is Jamie Dimon, CEO of JPMorgan Chase, who said last month that Bitcoin was "a fraud" and that it "was worthless".
The cryptocurrency market has recently experienced a surge in prices. At its highest level, bitcoin surpassed the $ 6,000 mark, making it worth more than Goldman Sachs and helping to raise the combined market value to about $ 170 billion.
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