Gold advocate Dennis Gartman told in an interview with Bloomberg that he does not understand bitcoin, but does not rule out the possibility of the first cryptocurrency rising for decades.
“Bitcoin is the gold of millennials. I will never understand bitcoin… and I leave it to people who are wiser, smarter or braver than me,” said the chairman of the University of Akron Foundation Endowment Fund.
Gartman’s fear about investing in bitcoin is linked to regulation. In his view, central banks around the world will tighten control over monetary policy, which would lead to bitcoin’s price collapse to zero.
Although Gartman remains a gold advocate, he concedes competition from bitcoin:
“There are those who have succeeded [in investing in bitcoin]. I wish them continued success, but I personally prefer to own gold.”
However, the fund’s chairman does not attribute bitcoin’s price rise to its deflationary model. In Gartman’s view, there are thousands of altcoins that offset the limited supply effect of bitcoin.
When asked whether bitcoin could rise to $100,000 per coin before it devalues, Gartman replied:
“As John Maynard Keynes once said, the market can stay irrational longer than we can stay solvent. That is exactly what is happening with bitcoin right now.”
He said that enthusiasm for bitcoin and cryptocurrencies will wane over time, but added that it could take another two, three or even four decades.
Earlier, in early December, the Winklevoss twins called bitcoin the new gold and predicted its rise to $500,000. In their view, bitcoin is a new store of value capable of surpassing gold, but for this its price would need to rise twenty-fivefold.
Earlier, an Australian former senator called bitcoin ‘gold for millennials’. In his assessment, demand for the cryptocurrency is becoming stronger.
Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.