Bitcoin price WARNING: CEO warns cryptocurrency has NO VALUE – 'I'll NEVER invest in it!'
BITCOIN is not worth investing in as its value is entirely based on speculation and the cryptocurrency will not produce long-term returns, warns Vanguard CEO Tim Buckley.
Vanguard CEO: I would never invest in Bitcoin
Bitcoin does not generate earnings and does not have any underlining economic value, according to Tim Buckley, CEO of Vanguard.
Speaking to CNBC, Mr Buckley said his company would “never have a fund on bitcoin".
He said: “We love the underlying blockchain technology behind bitcoin, the digital distributor ledger.
We tend to stay away from assets with no underlining economic value like bitcoin
“Bitcoin itself? You will never see a fund from Vanguard on bitcoin.
“We tend to stay away from assets that don’t have an underlining economic value.
“They don’t generate earnings or cash flows. We don’t have any gold fund either.”
He explained: “Bitcoin’s value is based off scarcity, an artificial scarcity that’s out there.
“It’s really tough to imagine where the long-term returns come from, other than speculation.”
Despite the rising criticism around bitcoin and other cryptocurrencies such as ethereum and Ripple, the cryptocurrency craze continues to surge.
Federated portfolio manager Steve Chiavarone said investors are flocking to get on the bitcoin bandwagon, seeking risk in a way not seen since the Great Recession.
In an interview with CNBC, he said: “I think what is most interesting is that it’s the first sign of greed since the Great Recession.
“If you really think about it investors wanted to be on the rollercoaster in the 90s, they wanted high returns they didn’t mind volatility.
“The Great Recession put the fear in a lot of folks, they wanted to go on the merry-go-round, they wanted low vol, they wanted their dividend yield.”
According to Coindesk at 09:25 am on January 24, Bitcoin price is $10,826.3 while ethereum price is $1,001.84 and Ripple price is $1.37.