Famous Name Announced: Bitcoin Traders Losing From The Beginning For Doing This
Is there really any point in looking at charts and doing fundamental analysis on Bitcoin? Mark Mobius thinks you are wasting your time by doing this.
What is happening with Bitcoin? Satoshi Nakamoto’s design suffered one of the worst crashes of the year while everyone was waiting for an all-time high. The analysis is contradictory, but some experts say this contradiction is not a real issue to work on and that investing in cryptocurrencies can be dangerous and extremely dangerous.
“They’re Losing From The Beginning”
Mark Mobius is one of the experts supporting this thesis. The founder of Mobius Capital Partners LLP and the admired authority on emerging markets told Financial News that there was no point in trying to analyze bitcoin prices because it ultimately didn’t follow any patterns. Mobius said:
“Trying to predict the bitcoin price is to lose it from the beginning.”
Trying to compare is undoubtedly difficult. Throughout the year, bitcoin was highly associated with gold and the SP500, which tends to be a bit unreasonable. A recent report from Fidelity Digital Assets shows that Bitcoin is “unique” among all investment assets. This simply means that the price does what it wants.
This may reinforce the theory that there is a lot of randomness in the performance of Bitcoin. For example, it lost 50% of its value at the beginning of the pandemic and then launched a rally while at the height of the pandemic. Shortly after the US presidential election, it fell sharply.
Mobius says speculating with Bitcoin is very much like winning a lottery or playing poker:
“[Bitcoin’s price] is based on no reliable information… [Its rise] is a casino operation based on all kinds of rumors and speculation.”
Fix Pleases Bitcoin Opponents
Of course, when the price drops, the voices of Bitcoin critics are louder. It’s not just Mobius that makes warnings. The most famous Bitcoin opponents have something to say:
Famous anti-BTC Nouriel Roubini said investing in BTC is worse than betting in a casino because the market can be less transparent than a regulated gambling.
“Investing in BTC is equivalent to taking your portfolio to a fraudulent illegal casino and gambling. At least in legitimate Las Vegas casinos, the odds aren’t burdened against you as the gambling markets are not manipulated the way BTC is. Instead, BTC is heavily manipulated by Tether and whales.Nouriel Roubini (@Nouriel) November 26, 2020 ″
Also, Peter Schiff commented that MicroStrategy’s move to acquire bitcoin was dangerous and called it gambling:
“I think it is inappropriate for @ Michael_saylor to gamble with shareholder funds on #bitcoin. If MicroStrategy doesn’t have an efficient use of excess cash, it should start paying dividends. Later, shareholders who want to roll the dice in Bitcoin can do so with their own money.Peter Schiff (@PeterSchiff) November 25, 2020 ″
Two days later, on a podcast, he criticized Bitcoin for being a highly manipulated market with a lot of crash potential.
“Regardless of whether it’s making a new rise or not, I expect the price to drop… We are now in a very, very vulnerable position for a much more important pullback… Obviously, many insiders don’t want this to happen. [This] to the extent that if they can take Bitcoin to a new peak, they will do their best to do so. The question is, can they do it? “
It’s too early to talk about a bear market. A correction was expected, and some had even made it clear that the markets needed it.