Bitcoin has no intrinsic value — Top hedge fund manager

Hanno Labuschagne

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Bitcoin has no intrinsic value — Top hedge fund manager

Protea Capital Management CEO Jean Pierre Verster says he is not a crypto bull and that cryptocurrencies have elements of a Ponzi scheme.

Verster is one of South Africa’s top hedge fund managers, and is well known for predicting the troubles at African Bank and Steinhoff and shorting their stock.

Speaking to Biznews, Verster said he thinks blockchain is a wonderful technology and will find applications when it comes to having open ledgers.
 

neoprema

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Well it doesn't by the old definition of what a commodity should have. But that's because its not an old commodity-based system. it may not have value you can hold in your hand but but it has value, as long as you're not tied to how we used to do things where you expect that a paper note somehow must be backed by Gold or whatever for its intrinsic value. Which is in fact a pipe dream these days anyway since currency and money is just numbers for the most part. Guess what Bitcoin is...
 

InvisibleJim

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I do agree that it is impossible to take a view on the true value on a crypto currency in the same way that you can with a share in a company. That pretty much rules out employing a value investing approach to crypto. You can't determine if the market is under or over valuing the currency.
 

w1z4rd

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This guy is clueless, and thats good for us, it gives us more time to move into the market before people like this guy do.
 

GhostSixFour

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Neither does the dollar anymore? It's not tied to the gold standard anymore? Take your ZAR to the bank and ask to exchange it for the gold there JP. Wait.. Why is gold valuable again?
 

notayoba

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I believe the man is right. Eventually every believer will have bought in. In fact I think that might have already happened.

Believers selling amongst themselves can only prop up the price for so long. Without new blood the drop will be close to vertical.
 

w1z4rd

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I believe the man is right. Eventually every believer will have bought in. In fact I think that might have already happened.

Believers selling amongst themselves can only prop up the price for so long. Without new blood the drop will be close to vertical.
There are whole generations of kids and young adults growing up that have known nothing but a bitcoin world. Your words will fall on less ears as the years carry on.
 

Synaesthesia

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The extremely high value of bitcoin makes it feel like a bubble, it's highly volatile, unlike gold, or even fiat currencies which aren't going to vary by 15-20% a week like Bitcoin often does.

The USD Tether thing has contributed a lot to the inflation of Bitcoin's price, they are supposed to be backed but they pretty much just printed them. It's definitely not a secure investment.
 

w1z4rd

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The extremely high value of bitcoin makes it feel like a bubble, it's highly volatile, unlike gold, or even fiat currencies which aren't going to vary by 15-20% a week like Bitcoin often does.

The USD Tether thing has contributed a lot to the inflation of Bitcoin's price, they are supposed to be backed but they pretty much just printed them. It's definitely not a secure investment.
Hasnt gold moved like 10% in the last 10 years or something like that? If you want those kinda returns stay in gold.
 

InvisibleJim

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Well it doesn't by the old definition of what a commodity should have. But that's because its not an old commodity-based system. it may not have value you can hold in your hand but but it has value, as long as you're not tied to how we used to do things where you expect that a paper note somehow must be backed by Gold or whatever for its intrinsic value. Which is in fact a pipe dream these days anyway since currency and money is just numbers for the most part. Guess what Bitcoin is...

I guess you could arrive at an opinion of the 'true' value of a traditional currency based on the economic health of the sovereign state in question which would allow you to take value based decisions versus the current market value.

I like your comparison of crytpo to commodities rather than currency. I'd not thought about it in that way before.
 
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