Bitcoin has a habit of dividing people. Some are all for it, while others think it’s weird, evil, or a complete waste of time. For enthusiasts, the difficulties always come when legendary investors or businessmen attack bitcoin’s prospects and act like it has no merit. Today, people like Warren Buffett are joined by the ranks of Mark Mobius, a trader who founded Mobius Capital Partners last year after spending the last 30 at Franklin Templeton Investments.
Mobius: Bitcoin Is a “Psycho”
In a recent interview, Mobius referred to bitcoin and its crypto cousins as “psycho currencies,” claiming that they only spike if people believe in them enough. He’s confident that pushing bitcoin will ultimately cause other hardcore assets – like gold and precious metals – to jump in the coming months.
I call them psycho currencies because it’s a matter of faith whether you believe in bitcoin or any of the other cybercurrencies… I think with the rise of [bitcoin], there’s going to be a demand for real, hard assets, and that includes gold.
To an extent, it’s a little hard to take Mobius seriously considering he switches back and forth on crypto almost at the drop of a hat. All last year, Mobius was very critical of bitcoin and other cryptocurrencies, claiming they were pure speculation and not worth our time or attention. Earlier this year, however, that sentiment changed somewhat. He said that digital currencies were the mark of the future, and likely to stick around for some time.
Unfortunately, one can only assume that he means long enough to push gold where it needs to be based on his recent verbiage.
At press time, gold has shot up in price to roughly $1,500 an ounce. This is the highest it’s been in several years, largely due to concerns over the ongoing U.S.-China trade war. Many see gold and similar metals as “safe havens;” ways to preserve one’s wealth during times of economic strife.
Many also viewed bitcoin this way, and several analysts found themselves labeling bitcoin “virtual gold” in their considerations of the cryptocurrency. Sadly, bitcoin has toppled again at the time of writing, trading for just over $10,100. This is a drop of roughly $600 over the past 24 hours. Thus, fear is entering the crypto space and the thought of gold as a potential “safe haven” has fallen along with its price.
Mobius continued to tout the stamina of gold, claiming:
Gold Is Where the Money Is
Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up.
He comments that investors should get involved in gold regardless of the price, and points to the moves of mainstream banks, i.e. the European Central Bank, as proof that institutions are thinking the same way.