Australian fund manager Michael Glennon has blasted cryptocurrency as “useless” and referred to bitcoin as a “quasi-ponzi scheme”. Like many finance experts, he predicts terrible times ahead for all-in crypto converts. Here’s what he thinks you should be investing in instead.
In a scathing opinion piece for the Australian Financial Review, the founder of Glennon Capital admitted he was “already bored” of bitcoin and the entire cryptocurrency boom.
“I’m bored with the influx of LinkedIn requests I’m getting from cryptocurrency traders I have never met and I’m bored of explaining how useless all cryptocurrencies are and how you’re better to actually buy real businesses that make real profits,” Glennon said.
Glennon’s chief criticism centers on bitcoin’s lack of practical use as a currency. Until it is used consistently for things like retail transactions and utility bill payments, it will continue to have no inherent value.
Plus, there’s the fact that cryptocurrency investments earn precisely zero interest. They also present significant legislative risks to corporations looking to invest.
“It’s a currency that doesn’t do anything, is not backed by any sovereign nation, is not accepted anywhere, is hard to buy and sell, and has no fundamentals supporting it,” Glennon said.
Instead, Glennon urges crypto investors to refocus their attentions on companies that make a cash profit and/or provide a steady income stream.
“I own a small handful of businesses that I know well. They are real businesses that make real cash profits. I can’t understanding buying something that cannot be used anywhere,” he said.
[referenced url=”https://www.lifehacker.com.au/2018/01/warren-buffett-predicts-bad-ending-for-bitcoin/” thumb=”https://www.lifehacker.com.au/wp-content/uploads/sites/4/2018/01/Bitcoin-2.jpg” title=”Warren Buffett Predicts ‘Bad Ending’ For Bitcoin” excerpt=”Berkshire Hathaway CEO Warren Buffett revealed today that the firm had no interest in jumping on the cryptocurrency bandwagon.]
Glennon isn’t the only corporate mover-and-shaker with a dim view on the current state of cryptocurreny: last week, Berkshire Hathaway CEO Warren Buffett confirmed that the firm has no interest in jumping on the bitcoin bandwagon.
“We don’t own any; we’re not short any,” Buffett said during an interview on CNBC. “We’ll never have a position in them… What’s going on definitely will come to a bad ending.”
The global value of major cryptocurrencies has taken several big hits since December 2017. The latest fall, which affected Bitcoin, Ripple, Litecoin and others, was attributed to CoinMarketCap’s decision to remove prices from the South Korean exchanges without warning.
Glennon’s blistering op ed ended with some parting words of wisdom for crypto investors flush with digital cash: Get out while the gettins’ good.
“Lock in your profits and think yourself lucky that you have made a profit in the greatest bubble in recent times… Then go and put your money into a real business that makes money.”
Regardless of your stance on crypto, the adage about ‘eggs and baskets’ definitely applies.
[referenced url=”https://www.lifehacker.com.au/2018/01/four-factors-driving-the-price-of-bitcoin/” thumb=”https://www.lifehacker.com.au/wp-content/uploads/sites/4/2014/02/BitcoinMining.jpg” title=”Four Factors Driving The Price Of Bitcoin” excerpt=”The price of bitcoin is constantly changing with dramatic spikes and colossal drops each and every month. All of this shows how volatile the currency is, which prompts the question – what’s causing such huge movements? Here are four factors you need to know about.”]
[Via AFR]