Bitcoin – A Speculative Asset with “No Intrinsic Value”, Says Business Insider Founder

Journalist:
Samburaj Das @sambdas
June 3, 2017

As bitcoin captures the world’s attention while soaring to unprecedented heights, the cryptocurrency has been labelled as an asset primed for a bubble, with no intrinsic value.

Henry Blodget is the founder, CEO and editor of prominent financial news publication Business Insider and was part of CNBC’s Squawk Alley, a televised show, recently. Bitcoin was the subject of a segment and Blodget offered his take on the cryptocurrency’s soaring gains in recent weeks.

He stated:

Look, this is a perfect asset for a speculative bubble…There is a finite supply. There is no intrinsic value. If anybody is persuading you that it should somehow be related to some GDP or gold…put down the Kool-Aid and back away.

In response, a CNBC host bought up Bitcoin’s applicability in countries like Venezueala, where new bitcoin miners have imported groceries from Amazon Pantry in the United States by paying with the cryptocurrency.

“It has a use,” he replied. “There is no question. There are uses for it. The transactions are steadily increasing. That’s a good sign…if you are going to use it.”

Finally, he sees the bandwagon of investors getting buying into bitcoin with the hope of striking rich rewards in the long run.

It could literally go to a million. There is no reason why no…The logic of folks who are buying and speculating in it…’[They’re saying] All I can lose is a 100%. I could make 10x, a 100x, a 1000x…I’ll take that trade if I’m willing to lose that 100%.’

With bitcoin in the mainstream, commentators and speculators are likely to see the cryptocurrencies as stocks or commodities, comparing it to the norm of traditional markets.

As for bitcoin having no ‘intrinsic value’, over 2 million transactions every week globally between people, businesses, charities and more say otherwise.

Featured image from Shutterstock

Last modified (UTC): June 3, 2017 21:40

Samburaj Das @sambdas

Samburaj is the Editor for CCN, among the earliest and foremost publications covering financial and blockchain news. He has authored over 2,000 articles for CCN. Email him samburaj(@)ccn.com or find him barely tweeting @sambdas