Co-founder of investment company AQR Capital Management Cliff Asness believes that Bitcoin remains a bubble due to the lack of methods for using cryptocurrency.
I consider myself one of those who call Bitcoin bubble. For me to stop doing this, the number of uses for the coins would have to increase, not their price would have to increase. That would make me take a more pro-crypto stance, — said Asness during CNBC's "Tough Guys."
Cliff Asness
Asness is convinced that Bitcoin It is suitable for use only in three cases, namely:
- Making profits through speculative trading;
- Preservation of savings in countries at war;
- Ransom payments to hackers.
Cliff was right not to mention the method of using Bitcoin as a means of payment on illegal marketplaces on the darknet, since clients of most shadow platforms have long abandoned BTC in favor of anonymous cryptocurrencies, for example, Monero (XMR), which allows you to hide data about transaction participants.
PayPal co-founder Peter Thiel рассказал about the three main signs of a bubble:
- Extreme abstraction (apparently, detachment from reality);
- Unsustainable exponential growth in value;
- Psychosocial mania.
It is clear that Bitcoin does not exhibit the bubble characteristics of unsustainable exponential growth and psychosocial mania, because the BTC price has been increasing without catastrophic corrections since November 2022, and the peak of the cryptocurrency hype wave has long passed. Accordingly, the status of BTC can be debated, but Thiel is skeptical about the future of cryptocurrency and doubts that Bitcoin will be able to rise in price as much as in the first decade after its creation in January 2009.
