Macroeconomists: “Bitcoin Is Almost Useless”
April 8, 2018
Capital Economics, London-based company on macroeconomic research, has claimed there is no phantasm of a hope left for Bitcoin investors. The №1 cryptocurrency will fall behind the shares and bonds as it is almost useless.
According to the article, despite Bitcoin moved on regardless of prices on other assets as the end of 2017, since the bubble began blowing off it has been correlating more closely to other risky assets like shares.
The cause for a sudden drop as Capital Economics says is “likely to be a realization that it is simply not a credible long-run alternative to conventional currencies”.
More fuel to the controversy was added by Jeffrey Gundlach, who is at the head of DoubleLine Capital. In December he gave a bit of advice for investors to short Bitcoin just before BTC price neared $20,000. Now he comments on the shrunk cryptocurrency as follows:
“There is a connection between bitcoin and the basic social mood … and the speculative animal spirits.”