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Ignorant Wealth Manager Says Bitcoin Collapse Is Imminent; Here’s Why He’s Wrong

Summary:
Another Wall Street executive is calling for the collapse of bitcoin along with other cryptocurrencies. The wealth manager believes that bitcoin will follow the footsteps of Blackberry and Lycos. He fails to understand that bitcoin is the best performing asset of the decade and its function has evolved from simple payment settlement into a global hedge against the traditional banking system. Many so-called Wall Street experts have come forward over the years to criticize bitcoin and other cryptocurrencies. Some see bitcoin as a bubble and that it will soon burst at the expense of investors and speculators. Others believe that the top cryptocurrency will eventually die because of its inability to scale. Now, another Wall-Street personality is gaining Twitter engagement because of his

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  • Another Wall Street executive is calling for the collapse of bitcoin along with other cryptocurrencies.
  • The wealth manager believes that bitcoin will follow the footsteps of Blackberry and Lycos.
  • He fails to understand that bitcoin is the best performing asset of the decade and its function has evolved from simple payment settlement into a global hedge against the traditional banking system.

Many so-called Wall Street experts have come forward over the years to criticize bitcoin and other cryptocurrencies. Some see bitcoin as a bubble and that it will soon burst at the expense of investors and speculators. Others believe that the top cryptocurrency will eventually die because of its inability to scale.

Now, another Wall-Street personality is gaining Twitter engagement because of his views on cryptocurrency. He believes that bitcoin along with almost every other cryptocurrency will collapse. The arguments that he presents are hilarious and show his total lack of understanding of what bitcoin offers.

Wall Street Executive: Bitcoin ‘Is Not a Real Investment’

Peter Mallouk, president of Creative Planning, shared his two cents on the future of cryptocurrency on CNBC. The Wall Street executive claimed that bitcoin and other cryptocurrencies “will not work out.” He also said that investing in the top cryptocurrency is not the way for a young people to build their wealth.

In a nutshell, Mallouk said that cryptocurrencies will collapse because they will not replace fiat currency. This argument just shows his shallow understanding of the unique value that bitcoin and other cryptocurrencies offer.

He then compared bitcoin to Blackberry and Lycos and assumed that the cryptocurrency will be wiped out by a bigger fish. Mallouk explained how Blackberry was killed by Apple while Lycos was put out of business by Google.

From an objective stance, I was waiting for Mallouk to provide evidence to back up his assertions. Unfortunately, he provided nothing. I guess this person was banking on his position to sound like he’s an authority in the field because his arguments offer no substance.

The Best Performing Asset of the Decade

Anyone who says that bitcoin is not a real investment should do their homework. A quick Google search reveals that the top cryptocurrency is up by 164,000% since its 2009 inception. No other asset comes close to BTC’s gains over the last ten years. Not even the best companies in the world can compete against the number one cryptocurrency in terms of investor returns.

Bitcoin leaving all the top U.S. companies in the dust | Source: MarketWatch

Also, comparing bitcoin to Blackberry and Lycos is just plain ignorant. Bitcoin doesn’t have traditional competitors, aside from other cryptocurrencies. There is no other asset in the world that comes close to what bitcoin offers. Quoting Travis Kling, founder of Ikigai Fund, bitcoin is a

Non-sovereign, hard capped supply, global, immutable, decentralized, digital store of value.

Bitcoin perfectly summed up | Source: Twitter

Peter Mallouk: Bitcoin is not trying to replace regular currency. It transcends fiat currency by being the only uncorrelated asset in the world. Central banks may decide to print trillions, the economy may collapse, the stock market may tank and bitcoin will likely not be affected. That’s the number one cryptocurrency’s unique value proposition.

In the end, you can’t blame Peter Mallouk. If we’re still in 2017, he may actually have a point. But we’re not.

The industry is evolving so fast that payment settlement is no longer the sole purpose of cryptocurrencies. That’s why it is hard to take any advice from someone looking from the outside. They are not up-to-date with the changes, hence the ignorance.

Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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