Jim Thanos, I mean, Chanos, a Yale professor that predicted the fall of Enron, is questioning legitimacy of bitcoin as store-of-value case. And his reasons are good and should be listened/read by all. Even if you think cryptocurrencies are “the great thing”, you should read it, because if he’s right, the game can change completely at any moment.
“This is simply a security speculation game masquerading as a technological breakthrough in monetary policy,” Chanos in an interview with the Institute for New Financial Thinking published this week.
Chanos, who teaches a course on the history of economic fraud at Yale University, says the mania about cryptocurrency following bitcoin’s rise close to $20,000 final year fits into what he calls the “fraud cycle.”
Bitcoin has been compared it to “digital gold,” simply because some see it as a retailer of worth, and it includes a limited provide. Apple co-founder Steve Wozniak told CNBC in an interview this week that he “totally buys into” that comparison along with the phrase “pure digital gold.”
Chanos challenged that store-of-value case, saying that in an “apocalypse” food would actually function better as a currency.
“In the worst-case situation, that is specifically the case in which a digital currency will work the least,” Chanos mentioned. “The final factor I’d wish to own is bitcoin when the grid goes down.”