What the World's Top Speculators Think About Bitcoin

Catalin Zorzini  |

Bitcoin and other cryptocurrencies have been termed as highly speculative assets rather than lasting investments. Well, to some extent, there is some truth considering many people buy Bitcoin with a sole purpose of profiting from price fluctuations. Nevertheless, academic researchers indicate that stock markets benefit and are optimized by the involvement of both speculators and investors.

When you buy an asset that you have little or no information about, that means you’re merely speculating. It’s a form of gambling since you can’t tell if the price will improve or not.

Despite the inherent risk in this practice, there are many stock traders who have amassed fortunes by just betting on price changes. Let’s have a look at the wealthiest speculators and their thoughts on Bitcoin.

The Top 5 Speculators in the World and What They Think About Bitcoin

Warren Buffett

The second richest person who’s got the sharpest eye for viable investments may rarely talk about Bitcoin but he once recognized it as an innovative discovery. During an interview with CNBC in 2014, Buffett acknowledged that Bitcoin was intriguing.

The core trait that this entrepreneurial mogul loved about Bitcoin is it being able to be transmitted anonymously directly to another peer in any part of the world. Buffet accepted that checks are still an efficient way of transmitting money and hoped that this leading cryptocurrency would do better.

Buffett is the owner of Berkshire Hathaway and is a respected stock trader whose insights come from his long history as an avid scholar and entrepreneur.

Mark Cuban

The billionaire Shark Tank star and co-founder of Broadcast.com always harbors mixed reactions regarding Bitcoin and the blockchain. After a series of tweets bashing Bitcoin’s fame, Cuban went ahead to admit that Bitcoin ushered a valuable technology to the world of blockchain.

Just as he predicted, blockchain is now a part of many institutions from education, finance, agriculture, healthcare and many others. In short, Mark agreed that Bitcoin and the blockchain, in general, have value but at that moment in time, the cryptocurrency’s worth was overvalued.

Stanley Druckenmiller

As a successful money manager at his former Pittsburgh bank, Stanley became the man to watch as he branched off from being an employee to becoming a company owner. He was later on signed by George Soros as a Portfolio Manager at his firm-Quantum Fund. His star shined brighter when Soros and him made $1 billion from a single trade that saw the Bank of England go broke.

Stanley is not much of a Bitcoin proponent but he doesn’t paint it in bad light. In an interview with CNBC, he admitted he should be owning some Bitcoin as a stock trader but he doesn’t because he isn’t familiar with the currency.

When asked whether Bitcoin will go as high as $100, 000 or $1 million, his answer was simple; “Bitcoin is worth what the market participants are willing to pay.” Stanley also believes that if Bitcoin is to go down, then it that will happen as a result of the currency being defunct; not as a bubble.

Ray Dalio

Ray is an astute stock trader and investor who owns the world’s largest hedge fund company. Like Warren Buffett, he too doesn’t have an extensive understanding of Bitcoin and other cryptocurrencies. While talking to CNBC, the Bridgewater Associates’ founder regarded Bitcoin as functional-albeit theoretically.

According to his statement, the currency would stand tall above everything else if it’s accepted at many buying and selling points. He also added that volatility makes it look like a bubble. So basically, if these issues are addressed, the cryptocurrency king could rule the crypto perch for quite a long time.

Ben Bernanke

The former Federal Reserve manager is another person with mixed feeling about Bitcoin and other cryptocurrencies. A few years ago, he wrote in a letter to Congress that digital currencies may hold long-term value.

In his letter, Ben said that if cryptocurrencies can provide a faster, more secure and efficient payment system, then they can solve the inherent problems in modern payment methods.

An Honorable mention

Richard Branson

The one billionaire who appreciates cryptocurrencies and their underlying technology is Virgin Atlantic’s boss, Richard Branson. Once, he referred to the blockchain as an “economic revolution.” As a fan of the blockchain, Richard has held several meetings to discuss this nascent technology and what it could do for other industries. The meetings must have been a success since it resulted in new partnerships and ideas.

It pays to learn from the best.

Learning from the best either through interaction or by watching every move they make is the road to success. Speculative traders like Warren Buffett, Ben Bernanke, and Ray Dalio have made it big by simply observing or rather speculating about ventures. This is something we can achieve as long as we remain firm even when the market looks like it’s in a bubble.

Before you go forth and go long or short on any cryptocurrency, make sure your move is backed by some concrete evidence of favorable market conditions. Sometimes it’s okay to part with a few shekels for a financial advisor. Either way, always make it a point to invest only a certain amount of your wealth into volatile markets. You don’t want to want to yourself in the rain if things go south.

The bottom line

Cryptocurrencies are not perfect; they are a work in progress. Stocks, bonds, and shares began the same way only that being pinned to traditional assets gave them a concrete form. Digital assets are pretty nascent and there are many milestones to be achieved to make them worthy investments. Moreover, the volatility is considered to be too high that it becomes quite difficult to make near-accurate price predictions.

Not many traditional venture capitalist can appreciate digital assets. If you look at the list of the top 10 wealthiest people in the world, you’ll realize that most of them are octogenarians and above. This means they never got to learn more about digital assets and they just don’t have the zest to do it now. Nevertheless, as time goes by, there will be a new class of billionaires who believe in digital assets.

. He's a design enthusiast and loves matcha, and is uber passionate about Bitcoin and blockchain technology.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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