The Volatility of Crypto: Where Is Bitcoin Headed?
One of the world's most renowned investors, Mark Mobius, is concerned with Bitcoin's price volatility.
The founder of Mobius Capital Partners expressed his apprehension during a TV interview with BNN Bloomberg on Tuesday, adding that Bitcoin doesn't look very good to him at this stage of the game.
“I'm hesitant to condemn it because so many people have faith in it. It's all a matter of belief and faith, rather than a strict interpretation of the numbers," Mobius said, noting he is not investing in the cryptocurrency at this moment.
Bitcoin surged above US$40,000 earlier this week on reports that e-commerce giant Amazon.com Inc. was looking to fill a job position in digital currency and blockchain strategy.
The cryptocurrency's price fell shortly after Amazon denied the speculation that the company would accept Bitcoin as a form of payment this year.
Despite optimism surrounding high-profile moves like Tesla Inc.’s decision to put Bitcoin on its balance sheet, investors who have held onto the cryptocurrency for the past few years have had to stomach significant price volatility.
"In Bitcoin, you're really hoping someone else will pile in and push the price up -- so it's quite speculative," Mobius said.