Michael Spencer, CEO of NEX Group Plc, a London financial expert, sees bitcoin’s price reaching $20,000 before reversing steeply, joining the cadre of financial leaders who claim bitcoin is a bubble,
Spencer told Bloomberg TV’s Guy Johnson in London that he has no idea if bitcoin’s price will double before it halves, but said it could hit $20,000 “pretty damn quickly.” Johnson began the interview referring to bitcoin, which surpassed the $11,000 mark on Wednesday, as “irrational exuberance.”
Spencer acknowledged that cryptocurrencies are here to stay, but said bitcoin is a bubble.
In July, Spencer said he prefers Ripple and Ethereum to bitcoin and that he might introduce NEX trading platforms for cryptocurrencies. The problem with any bubble, he said, is that you don’t know if it’s going to double before it halves.
“At some point, it’s going to go a hell of a long way back down,” he said.
Bull markets typically hit a point where everyone is bullish, he said, and he doesn’t think bitcoin has reached this point. , SaAcknowledging that bitcoin has broad momentum, Spencer said there are signals that it is not the time to invest in it just because others are doing so.
Spencer, like many other bitcoin naysayers, is optimistic about blockchain’s future, noting that it has enormous implications that extend beyond the financial markets.
He said blockchain technology could be used to provide real-time settlement of securities transactions.
The fact that a technology has implications in many industries where it can improve efficiencies does not mean the bull market “can’t roll on a bit,” he said, hinting at bitcoin. He said there are signals that this is not a time to be “chasing everything the way everyone else is.”
Spencer also addressed the volatility of stocks, Brexit and other financial topics. NEX Group’s shares tumbled earlier in November after claiming market conditions were creating challenges for its post-trade services and electronic trading.
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Last modified: July 13, 2020 3:10 AM UTC