The sheer volatility of Bitcoin price gives an impression to many that it’s good to treat it as an asset and invest in it. But billionaire investor Howard Mark is of view that ‘Bitcoin is not an investment but a trade’.
Perhaps the very intention behind the creation of cryptocurrency like bitcoin was to make trade a hassle-free process.
In a recent news reported by CNBC, Howard mentioned that
“It’s not an investment … it’s a trade [..] In the long run, I think it will be shown not to have any substance.“
He further elaborated that, people are buying bitcoin because they think in future someone will buy it from them at a higher price.
Also, he added that,
“Not because they can specify its intrinsic benefits. Not because they can judge the intrinsic value. But only because they think it’s going up”
Apparently, this is true if we observe graph of bitcoin price, it has suffered through a lot of high’s and low’s. Almost up to 50% market value for bitcoin has fallen as reported on CoinMarketCap. However, recently we saw a hike in bitcoin value reaching $7000 USD, which is its highest since June 9th.
Well said that its natural for any beginner or person with no idea bitcoin to plunge into such a conclusion. It’s better to be educated about the real purpose of cryptocurrency and go ahead.