Bitcoin (BTC) won several financial gurus in 2020 amid a difficult year for the US economy. Some market experts Like Dennis Gartman, they are skeptical of the digital asset.
Gold and Bitcoin are not really equivalent, According to Gartman’s interview with Bloomberg on Tuesday. “Gold has been around for thousands of years, Bitcoin has been around for 20 years”, said. Gartman has published a series of financial commentaries for over 30 years. called The Gartman Letter.
However, Bitcoin has not been around for 20 years. The pseudonymous creator of the asset, Satoshi Nakamoto released the framework written for Bitcoin in 2008 and the asset was officially released on the internet in 2009.
“Bitcoin is millennials’ gold, I understand, I understand,” Gartman said. “I’ll never understand Bitcoin if I can buy it for $ 10,000, $ 15,000, $ 20,000. I’ll leave it to people who are smarter, smarter, or braver than me.”
As many have projected before him, Gartman believes the price of Bitcoin will eventually fall. “I fear that in the not too distant future the monetary authorities, the various central banks around the world, will refuse to give up their monetary monopoly and intervene one day and Bitcoin will go to zero.” he said, adding:
“But can there be $ 100,000 beforehand? John Maynard Keynes once said that the market can be illogical longer than you or I, and right now it seems totally illogical to me. “
However, Gartman did not show any harsh feelings towards Bitcoin market participants, simply stating that he preferred gold to digital currency. He also mentioned the limited supply of Bitcoin and the case for the expected price increase of the asset. “Now there is something, 7,000 different cryptocurrencies out there”, he added, postulating:
“There are infinitely many, finite amounts of coins, so I think the fun, joy, excitement of Bitcoin and cryptocurrencies will eventually die.”
On the other side of Gartman’s feeling In 2020 there is a growing trend for traditional financial actors to allocate capital to Bitcoin.