What Financial Leaders Are Saying About Cryptocurrency
Today’s society revolves around the influence of leaders in their respective industries when it comes to exploring and legitimizing new trends. In the world of cryptocurrency, we have seen no shortage of opinions being voiced by many leaders in all kinds of industries, especially finance. Here’s what today’s financial leaders have been saying about cryptocurrency and its potential future.
Who’s Anti-Crypto
As exciting and revolutionary as crypto has been over the past few years, it’s still faced outcry from critics and skeptics from all around the world. Several financial experts have advised people to stay away from crypto or to avoid getting into it in the first place, including longtime investor and former chief executive of The Vanguard Group, Jack Bogle. Bogle has gone on record to dismiss the value of cryptocurrency, advising his followers to “Avoid bitcoin like the plague.” But he’s not the only one with such strong condemnation of cryptocurrency, as billionaire Mike Novogratz has also referred to cryptocurrency as “the biggest bubble of our lifetimes.”
The Microsoft titan himself also chimed in when asked about Bitcoin, revealing that he actually sold the small amount of cryptocurrency that he received for his birthday. Despite the quick exit, he has admitted that the underlying technology behind Bitcoin is promising: “There’s some really good technology in terms of sharing databases and verifying transactions that is talked about as blockchain. That is a good thing.” But don’t get too excited about his opinion, as he also believes that investing in crypto is “one of the crazier speculative things, where as an asset class, you’re not producing anything, so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type investment.”
This bleak outlook on the future of cryptocurrency has been supported by numerous leaders in the world of finance, especially Warren Buffett who is considered one of the greatest investors of our time. He quickly dismissed Bitcoin back in 2014 stating that “the idea that it has some huge intrinsic value is a just a joke in my opinion.” We’re seeing a pattern of financial leaders condemning Bitcoin and other digital currencies on their failure to present any real intrinsic value which may be present in other asset classes. Today’s investors have identified digital assets as a potential future of finance, something which longtime investors like Buffett and others have received with large skepticism.
Who’s Pro-Crypto
On the other hand, there have been plenty of influencers who have openly voiced their support and excitement for the emergence of cryptocurrency in today’s financial landscape. We’ve all heard dedicated proponents of crypto like John McAfee make insane predictions about how Bitcoin will surge in just a matter of years. But various financial leaders have also given much more sound and reasonable predictions based on their expertise and prowess in investing especially those given by today’s leaders in the financial industry.
In fact, it’s not just the financial leaders in America who are unfazed by the idea of cryptocurrency one day becoming detrimental to the economy. In a recent survey done by the London-based Center for Macroeconomics, it was found that “nearly 75% of a pool of top European economists do not think cryptocurrencies such as Bitcoin are or will become, a threat to the stability of the financial system.” Even current CEO’s of large financial firms like Goldman Sachs and Morgan Stanley have either supported the potential adoption of cryptocurrency or have already done so. For example, CEO of Morgan Stanley Josh Gorman countered those opinions calling Bitcoin a scam by stating that it’s “something more than just a fad,” while Abby Johnson — CEO of Fidelity — has called herself a “believer” and understands the potential of cryptocurrency. Last but not least, governor of the People’s Bank of China Zhou Xiaochuan has noted that “Digital currency and cash will co-exist for a long time,” emphasizing the potential of its positive disruption to the financial world.
Don’t just listen to what these people are saying to get a good idea about the potential that cryptocurrency has, instead let the facts do the talking. Goldman Sachs CEO Lloyd Blankfein has also been vocal about his thoughts on how cryptocurrency may very well soon be the future. In fact, he even said that it’s “arrogant” to think that cryptocurrency won’t be successful, aligning his statement with the launch of the firm’s newest Bitcoin trading desk. He also went on to say that “If you go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency?” Blankfein’s statements echo a larger theme of open mindedness and forward thinking, both of which are integral to buying into crypto fever.
Implications
Whatever today’s leaders are saying about the future of cryptocurrency, it’s clear that an increasing amount of financial institutions are adopting them. After all, opinions are nothing more than just that: opinions. Warren Buffett famously missed out on investing in Amazon and has since admitted his missed opportunity, reminding everyone that even the most accomplished financial leaders are not infallible. As influencers, these leaders have the ability to shape our own views and opinions of digital assets moving forward. Yet, their statements and predictions are nothing more than personal beliefs, so the best way to actually view the cryptocurrency market is to listen to the facts.
The fact is that an increasing amount of financial institutions and businesses are adopting platforms to trade and exchange digital assets, while many governments are either increasing regulation of cryptocurrencies or looking to expand into this space by creating their own nationally-backed coin. Understand that the best way to predict the future of cryptocurrency is by closely following the market and monitoring the current financial landscape.
Today’s financial leaders have solidified their roles as influencers and have done so by voicing their opinions on the future of cryptocurrency and many other new trends. Regardless of whether or not they’re right or wrong, these predictions should always be met with your own educated skepticism based on facts. As always, remember to DYOR when it comes to forming your own opinions and be patient.
Happy investing!
