Bitcoin

Bitcoin and Recent Wave of Naysayers

Bitcoin’s recent wild swing in valuation has created a team of a number of analysts all over the world who tend to have different opinions related to the digital currency. As much as there are bulls in the market, the bears are there to drag down the currency’s fame, but hey, there’s no such thing as bad publicity, right?

Naysayers

The most recent of the naysayers of bitcoin contain prominent media personalities, like the star of ‘The Profit’, Marcus Lemonis. The millionaire seems skeptical about the way the cryptocurrencies operate and isn’t quite ready to test volatility of the market by his investments.

The entrepreneur showed no interest in investments in cryptocurrency as he said that currencies like bitcoin are too unstable to be invested in. According to him, he felt more at ease with the physical currency that was safe and stable. In an interview with CNBC, he said:

I like it in my pocket and I like it in the bank. And what I would encourage people to do is, if they’re interested in something like [bitcoin], explore it — but nothing replaces good old-fashioned cash.

Lemonis feels that the people who are investing in bitcoin should study cryptocurrencies before they intend to do so, he also said that a better way for your investments to pay back is “diversification into different investments.” This eliminates the unnecessary risk involved with putting too much money into something that is too volatile.

The self made millionaire also shares his opinion that there aren’t opportunities for small businesses in crypto due to the high risk involved because of the volatility.

He cleared his stance related to bitcoin that most of the people who invest in bitcoin are the ones who’re just going with the flow, and before investing, they should study the overall market.

Kevin O’Leary, the entrepreneur and TV host of one of the famous shows “Shark Tank” had a similar opinion to that of Lemonis’. He told CNBC that he thought most of the people who invested in bitcoin were blind investors and didn’t have a clue how the currency works:

..quite sure that 99 percent of the people that own bitcoin do not understand how it works. That always is a cocktail for disaster.

O’Leary had a lot to say about the volatility of the currency, in fact, he upright rejected that bitcoin even works as a currency. He thinks that the currency has no intrinsic value. He said:

The fact is, it is so unstable — volatility is both directions, it’s up and it’s down — that nobody in a substantive transaction will take that risk. So it is a long way from being a currency.

The TV host said that for those who really understood how the currency works, it is much of an entertainment where all of your money count end up entering a sink hole or could be boosted to millions and it is all exciting.

If you don’t have a real understanding of what you are doing with that, you should only treat [bitcoin] for what it is — great entertainment.

He continued to say that he couldn’t say whether it was going to rise to $40,000 or just drop to zero so it is a complete entertainment.

I don’t know if it is going to $40,000 or zero, and nobody knows. So, I just think it is a wonderful entertainment, just like a slot machine is, or putting chips on a roulette wheel.

He also agreed with Tony Robbins when he talked about bitcoin investments saying that he looked at them like going to Vegas, and gambling: “I know I could lose, this is Vegas.”

Showing his stance about Bitcoin, O’Leary said in conclusion:

Right now it is fun, exciting, entertaining. As long as you can afford to lose everything you put into it, go with it.

According to these millionaires and prominent TV personalities, bitcoin lacks intrinsic value and could be used only as an entertainment because of its volatility. Both of them agreed that bitcoin is far from being called a currency as it operates in different ways and is too risky. Although the arguments of the two entrepreneurs might be coherent with the market’s swinging volatility at the moment, but the institutional backup like Starbucks and Wall Street, and the signing of the ETF proposal by the SEC might give a different perspective of this currency to the naysayers.

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