Despite the recent recovery, Bitcoin prices are likely to continue falling amid rising regulatory pressure. This view was voiced in интервью Bloomberg by the renowned emerging markets investor Mark Mobius.
“I’m afraid the law will break it. I hate to say that. I have many friends in this space, but I don’t understand how enthusiasm for cryptocurrencies will grow in such an environment. Because you will see governments increasingly crack down on the industry,” said the founder of Mobius Capital Partners.
For this reason, many companies are entering the digital-asset trading space, seeking to take advantage of the still-open opportunities, Mobius noted.
According to him, the price of the leading cryptocurrency is buoyed by large amounts of money among US households from government stimulus programs and by the hype around an asset that is wrongly likened to gold.
“It’s a matter of faith that is likely to run dry. And of course, this cannot be compared. I could wear gold watches, but Bitcoin—I can’t,” Mobius said, noting the lack of fundamental value in the digital asset.
He says investors should exercise caution regarding Tesla and other companies that have added cryptocurrencies to their balance sheets:
“I am really surprised that they are doing that. And I would be very wary investing in such a firm.”
Back in July 2019, when digital gold traded around $12,000, Mobius suggested he might buy the asset if its rise continued.
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