As bitcoin captures the world’s attention while soaring to unprecedented heights, the cryptocurrency has been labeled 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.
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 Venezuela, 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 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.
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