Bitcoin and some other cryptocurrencies have surged in prices to a surprising level. However, these digital assets are proven highly-volatile and risky given the huge sell-offs over the past few weeks. Regulators worldwide intensified their crackdown on cryptocurrencies.
In 2014, Singer rejected the argument of bitcoin advocates that the cryptocurrency will eventually replace gold. He emphasized that “bitcoin will stand the test of time. Governments will protect the value of government-created money.” He also pointed out that “gold stood the test of thousands of years as store of value and medium of exchange.”
Investing in cryptocurrencies is an indication of limitless ignorance
In his 4Q letter, Singer also stated that those encountering a cryptocurrency switched from a sense of WTHIT (What the hell is this?) to a stable FOMO (fear or missing out).
Furthermore, the billionaire investor rejected that perception that bitcoin is scarce. He described the idea “misguided.” He explained that forking…have created an increase in supply and a dilution… of the value proposition for cryptocurrencies.”
