Chanos Blasts Bitcoin As "Speculation Masquerading As Breakthrough"

Authored by William Suberg via CoinTelegraph.com,

Hedge fund mogul Jim Chanos claimed Bitcoin was “masquerading as a technological breakthrough” in a new interview with Bloomberg June 4. Chanos said that in the event of a global crisis, it would be “better” to own food, or a government-backed (fiat) currency.

image courtesy of CoinTelegraph

Speaking to the Institute for New Economic Thinking and quoted by various media outlets, Chanos, who last year stated he “didn’t understand” Bitcoin or blockchain technology, issued stark warnings about cryptocurrency investment.

“We’re now nine years into this bull market, same as the ’90s, so I suspect that now things are starting to percolate,” he told Bloomberg. He also called the past year’s increased public interest in Bitcoin part of the “fraud cycle,” adding:

“This is simply a security speculation game masquerading as a technological breakthrough in monetary policy.”

Chanos added that in the event of a global crisis, governments would step in with fiat currency as lenders of last resort, an option unavailable to cryptocurrency, given its decentralized nature:

“For those who believe that you need to own digital currency as a store of value in the worst-case scenario, that’s exactly the case in which a digital currency will work the least.

The last thing I’d want to own is Bitcoin if the grid goes down.”

The well known short-seller, who predicted the fall of Enron, joins an ever-decreasing pool of steadfast Bitcoin naysayers.

Goldman Sachs CEO Lloyd Blankfein, who in December 2017 told Bloomberg Bitcoin “isn’t for him,” has since presided over a policy of increasing exposure to crypto assets.

Berkshire Hathaway CEO Warren Buffet and vice president Charlie Munger nonetheless remain committed to denouncing Bitcoin investment in increasingly grotesque language, with Munger most recently comparing crypto trading to dealing in “freshly harvested baby brains” last month.

Comments

lookslikecraptome ali-ali-al-qomfri Tue, 06/05/2018 - 17:36 Permalink

Crypto people are considerably crazy.  Dickeater John running for pres.   This dude who killed a sherpa on a crpto marketing scheme http://www.foxnews.com/world/2018/06/05/sherpa-feared-dead-on-mount-eve… .

Establishing a crypto country in Nevada or somewhere and a BTC billionaire wants to split California into 3 states. 

That is some wacky shit. 

In reply to by ali-ali-al-qomfri

QueeroHedge lookslikecraptome Tue, 06/05/2018 - 20:09 Permalink

Hehe well the bcash shysters were trying to ferment legitimacy via supposed piratebay association so it's a great comeback yes.

 

Still it won't stop the getrichtomorrow dullards like tmosley from throwing money down that hole. tmosley the nobitcoiner who in his own words went 'allin on BCH' at $2400, now currently $1100 so i guess tmosley has experience with worthless speculative coins

In reply to by lookslikecraptome

I am Groot tmosley Tue, 06/05/2018 - 17:36 Permalink

Venezuela's collapse has all do to with their total dependence on oil and the price falling from $90/a barrel to $45. They had electrical problems because the water levels that power their hydroelectric dam are super,super low. The two had nothing to do with each other.

There have been plenty of times where CME's have knocked power grids offline or local power has been totally destroyed due to storms. So it could happen anywhere, anytime. Look at how many hurricanes and small storms knock out power across large areas of the US alone.

In reply to by tmosley