“Big Short” Investor Claims Bitcoin Only Used For Money Laundering And Speculation
Steve Eisman, Wall Street veteran and popular personality gained popularity by shorting the sub-prime mortgage market before the last decade’s financial crisis. He now weighs in on Bitcoin, where he stands similarly-bearish on a new asset class: cryptocurrency.
Eisman, who’s prosperous career is represented in “The Big Short”, told CNBC in an interview that he has yet to meet someone that can present logical and feasible arguments regarding cryptocurrency’s use in society.
- “I’m not an expert on cryptocurrency, but I have my doubts about it. My doubts center on the fact that, ‘What’s the social utility of cryptocurrency?’ I’m not talking about blockchain. The technology, I think, has real value. But currency markets are the most liquid, most efficient markets, probably of any markets that exist.”
Despite admitting that a few exceptions for cryptocurrency adoption, such as Venezuela, Eisman elaborated that developed countries’s only use for cryptocurrency is speculative investment and money laundering.
- “I think the social utility, at least in developed countries, is extremely small. The only thing I can really figure out the usage of it is that it’s good for speculation, and it’s good for money laundering.
While he does bash bitcoin, he says he doesn’t plan to make it his next big short for two reasons. First, he doesn’t specialize in currency trading and second, he believes it’s impossible to assign bitcoin a fair market value. He explains:
- “It’s like arguing how many angels can dance on the head of a pin. I have no idea how to value it, and I don’t think anybody else does either.”
This interview is the second time Eisman has demonstrated he doesn’t believe in bitcoin and cryptocurrency this week. He had previously mentioned in an industry convention in Hong Kong that he believes that this asset class serves no purpose.