You may have had your share of FOMO — that’s fear of missing out — in recent years when it comes to cryptocurrency Bitcoin, but fund manager Larry Berman is here to put your mind at ease. In fact, steering clear of Bitcoin is the wisest advice he has for investors thinking about investing in crypto, saying that buying Bitcoin is and will always be pure speculation.
“I think fundamentally it’s worth zero,” says Berman, co-founder of ETF Capital Management and Quintessence Wealth, who spoke on a BNN Bloomberg session on Monday.
“It’s probably going to be the biggest Ponzi scheme we’ll ever have, including tulips, that we’ll ever see, when the history books are written 100, 200, 300 years from now,” he said. “Time will tell.”
Bitcoin fell over eight per cent on Monday in acceleration of a slide that mirrors the pullback in equities in recent trading sessions. So far in May, the cryptocurrency has slid from over US$37,000 per coin to now US$30,800, having lost almost 28 per cent of its value over the past month alone. Bitcoin was worth US$67,000 as recently as early November of this past year before starting a drop-off that has been felt in other riskier sectors of the market including technology and biotech, as investors retail and institutional pull out some of the huge sums of wealth that have been added to global markets over the past couple of years.
The turnaround in sentiment on equities is one thing, but the behaviour of an…
