Jim Chanos: Bitcoin is the Last Thing I’d Like to Own in Crisis
June 8, 2018
Reputable short seller Jim Chanos who once predicted the collapse of energy provider Enron Corp. voiced his ideas on applicability of Bitcoin and other cryptocurrencies in the times of deep crisis.
In his interview to the INET university’s publication Chanos said, given complications on the market arising, dollar and other fiat currencies have got sizeable advantage unlike cryptocurrencies as governments can force their distribution and act as last resort lender:
“For those who believe that you need to own digital currency as a store of value in the worst-case scenario, that’s exactly the case in which a digital currency will work the least. The last thing I’d want to own is Bitcoin if the grid goes down.”
According to the economist, influx of popularity for crypto industry started last year perfectly fits into the definition of the so called “fraud cycle” where people leave all their doubts about investing in the long term market growth. Chanos added, the same happened with the bull market of the 90s that when finished caused a wave of scandals involving Enron Corp. which, in its turn, resulted in the global financial crisis of 2008:
“We’re now nine years into this bull market, same as the ’90s, so I suspect that now things are starting to percolate. This is simply a security speculation game masquerading as a technological breakthrough in monetary policy.”