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I haven’t heard a good reason to invest in bitcoin, investor says

Bitcoin
Bitcoin
Lorne Steinberg

Bitcoin has climbed a long way over the past couple of months but portfolio manager Lorne Steinberg thinks there are plenty of reasons to be putting your investment dollars to use elsewhere.

“I go back to an old Warren Buffet line, ‘Only buy what you think you know,’” said Steinberg, president of Lorne Steinberg Wealth Management, who spoke on BNN Bloomberg on Tuesday.

“I’ve spoken to so many people about crypto currencies and I’ve never gotten an answer that has satisfied me, so my feeling is unless you’re a drug dealer or someone trying to get paid in cash and not pay taxes, I still don’t understand why someone would want to get paid in cryptocurrency, nor can one even value it.”

“There are easier ways to make a living by investing in some really fantastic companies that will pay you dividends…”

“For us, we would recommend to stay clear, as there are easier ways to make a living by investing in some really fantastic companies that will pay you dividends,” Steinberg said.

Bitcoin headed north of the US $10,000 mark on Monday, a peak last hit in February and one which could trigger more buying of the world’s most popular cryptocurrency. It’s been a couple of years now since the crypto-craze made bitcoin a household name, not to mention crowning a few insta-millionaires, and while bitcoin’s staying power speaks somewhat to its legitimacy, the cypto’s path in 2020 might be more revealing.

 

Bitcoin
“I go back to an old Warren Buffet line, ‘Only buy what you think you know…”

The COVID-19 pandemic has pushed central banks worldwide into a spending frenzy, enough, some say, to push some investors towards cryptocurrencies as a way to avoid the inflationary pressures on fiat currencies.

“The risk-on attitude and all the Fed stimulus is a huge tailwind for Bitcoin and the entire digital asset space,” said Mati Greenspan, founder of Quantum Economics, as reported by BNN Bloomberg on Tuesday. “If the Fed breaks down or if there is an erosion of trust in government-issued currency, then crypto assets may be used as a fail safe.”

From a different angle, some are concerned about a global currency reset, where countries break from the current designation of reserve currency status to the US dollar, a move which could cause hyper-inflation of the dollar and, as the scenario goes, cause everyone and their dog to jump onto cryptocurrencies as a safe haven.

Bitcoin

On that idea, Steinberg is also skeptical.

“Will global currencies be reset? I’ve always asked the question, reset against what? Every major central bank in the world is printing money and they’re competing with each other, so it’s hard to bet against the US dollar long term, I’d have to say,” Steinberg said.

There is some indication that bitcoin’s performance over the next while could be indicative of either a strong rally ahead, if the price can stay above $10,000, or a sharp pullback if it fails to keep ahead of the $10,000 mark.

On Monday, bitcoin rose from $9,483 to $10,123 but dipped back to the $9,500 mark by Tuesday. So far in 2020, bitcoin has risen 33 per cent in value, while for the past 12 months bitcoin is up nine per cent.

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About The Author /

Jayson is a writer, researcher and educator with a PhD in political philosophy from the University of Ottawa. His interests range from bioethics and innovations in the health sciences to governance, social justice and the history of ideas.

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One thought on “I haven’t heard a good reason to invest in bitcoin, investor says

  1. These suits like pimping people…why would they want that to change? Why would you expose the system’s faults if you’re profiting from them? I like drinking rat poison all these years

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