“Gloom, Boom, Doom” Author Downs The Bitcoin Red Pill
While the downturn in the cryptocurrency market has deterred retail investors across the board, it may have set the stage for institutional players, high net-worth individuals, and influential players in the world of finance to make an entree. In a recent interview with Cash, Marc Faber, who much like Nouriel Roubini is also known as Dr. Doom, revealed that he bought his first Bitcoin (BTC).
For those who missed the memo, Faber, best known for his “Gloom, Boom, Doom” finance newsletter and his standing as an investor, has long bashed digital assets. Like many others embroiled in the traditional world of finance, the Swiss investor likely isn’t all too convinced with digital money that isn’t within the bounds of a traditional asset.
But, he bought some (he didn’t reveal how many he bought) BTC regardless, just ten days ago as of the time of the interview.
He chalked up to his rationale to the fact that Bitcoin looks “technically better,” likely touching on the fact that the collapse from $20,000 to $3,150 likely wiped out most of the market froth that deterred technical analysts en-masse. This wasn’t the only reason though. Faber, now based in Thailand, adds that readers of his newsletter asking him about his involvement in cryptocurrency has also enticed him to look into BTC further. He’s FOMOing if you will.
Funnily enough, the two aforementioned factors were only underscored by a discussion Faber had with Wence Casares, the chief executive of cryptocurrency giant Xapo. Per the market cynic, Casares told him that BTC could very well go to either $0 or $1,000,000, accentuating the asset’s asymmetric value proposition. The fact that an industry insider openly admitted that the flagship cryptocurrency could crumble to dust may have enticed Faber in some way, shape, or form. Who knows?
Now that he owns his BTC now, the “Gloom, Boom, Doom” author seems to be a tad more optimistic. He tells Cash that there’s a fleeting possibility that Bitcoin or systems of a similar caliber could become the “standard for money transfers.” Yet he made it clear that prospective investors in BTC and other digital assets should only buy as much as they’re willing to lose, likely referring to his thoughts on the nascency of this newfangled asset class.
Regardless, the bottom line is that he scooped up some BTC.
Not The Only Crypto About-Face
Interestingly, Faber isn’t the only former cynic to have taken a 180, so to speak, as the crypto crash has continued to slam this market.
Niall Ferguson, a prominent economic historian, recently claimed that he was “very wrong” when he issued his comments that Bitcoin is a “complete delusion.” He added that there are a need and demand for digital currencies backed by blockchain technologies.
Funnily enough, there have still been some that have stuck with their anti-Bitcoin scripts though. Nouriel Roubini, for instance, told the CFA Institute that the fact that many asking for his advice on Bitcoin “did not even appreciate the difference between stocks and bonds or types of markets, or the basics of credit and interest rates” was an evident red flag that something was amok.
Title Image Courtesy of Dmitry Moraine Via Unsplash