Guggenheim Partners call cryptocurrencies a bubble amid market rout
Investment director Scott Minerd of Guggenheim Partners called cryptocurrencies a bubble, comparing the market situation to tulipmania.
Crypto has proven to be Tulipmania. As prices rise, tulip bulbs and #crypto currencies multiply until supply swamps demand at previous market clearing prices.
— Scott Minerd (@ScottMinerd) May 19, 2021
«Криптовалюты оказались тюльпаноманией. По мере роста цен луковицы тюльпанов и цифровые активы множатся до тех пор, пока предложение не превысит спрос при прежних рыночных ценах», — написал он.
Founder of Compound, Robert Leshner responded that this statement was a mistake, «bordering on financial incompetence». He emphasized that the supply of bitcoin and other digital assets does not increase as prices rise.
«С тем же успехом можно утверждать, что предложение акций растет вместе со спросом на них», — добавил Лешнер.
Popular cryptocurrency blogger Lark Davis backed the expert.
Dude, wasn’t your company going to invest hundreds of millions into #bitcoin? This comment shows you guys must have done almost no research on the topic, shocking.
— Lark Davis (@TheCryptoLark) May 19, 2021
«Разве ваша компания не собиралась вложить в биткоин сотни миллионов? Этот комментарий показывает, что вы, ребята, почти не исследовали тему, что шокирует», — написал он.
Minerd later noted that with the collapse of the tulip bubble, the flowers themselves did not disappear. In his view, this will be true for cryptocurrencies as well.
This is not the death of #crypto just as the collapse of Tulipmania was not the end of tulip bulbs!
— Scott Minerd (@ScottMinerd) May 19, 2021
Earlier, Minerd stated that the price of the first cryptocurrency could rise to $400 000-$600 000.
Earlier, in April 2021, the Guggenheim investment director warned of a possible correction of Bitcoin to $20 000. At that time, digital gold traded at around $50 000.
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