Vanguard's Joe Davis Says Bitcoin Will Go to Zero
Published 2 years ago
With bitcoin clawing its way back up and interest in cryptocurrency still top of mind for all sorts of investors, Vanguard's Joe Davis is often asked about the prospects for the leading digital currency. The way Davis sees it, calling bitcoin and other cryptocurrencies an actual currency is a bit of a stretch..
But Davis said that bitcoin is not a store of value because of its volatility. "Even if cryptocurrencies qualify for niche purposes, their prospects seem dubious," wrote Davis in the post..
As for cryptocurrencies as an investment, Davis said that case is weak too, given cryptocurrency does not generate any cash flows like interest payments or dividends, nor can its value be based on economic fundamentals. Davis does not even see cryptocurrencies as a way to play the blockchain movement, even though blockchain technology makes digital currencies possible..
Bitcoin is an investment in blockchain in the same way that Pets.com was an investment in the internet," wrote Davis. "With no cash flows and extreme volatility, the investment case for bitcoin is hardly compelling," he wrote, noting that blockchain technology development is in the early stages with the expansion of the technology to come over decades..Coin spectator is an automated news aggregation service. All copyrights belong to their respective owners. Images and text owned by copyright holders are used in reference to and promotion of those respective parties. Read in Full