August 28, 2017

Doug Kass slams Bitcoin and prefers Gold over Bitcoin

If you have not followed the development of bitcoin since its introduction in 2009, let me share some basics. Bitcoin is a virtual currency, an alternative payment system to currency issued by governments. 

The bitcoin price entered the weekend and reached just under $4,400, almost reaching a new all-time high. 

Doug Kass is skeptical on the digital currency and attacks the fundamental concept behind Bitcoin which is limited supply over its lifetime. 

"Who among us has actually seen and understood the bitcoin code? What is my assurance it cannot be modified to permit creating two times, or 10 times as much bitcoin as originally envisioned? But moreimportant, it seems bitcoin's purported limitation on quantity has not constrained the creation of other digital currencies. The resulting free-for-all has exposed another very real concern of mine that I have not seen adequately highlighted, and that is the very thing that has attracted so many tulip buyers: the volatility." - Kass

Can a volatile currency like Bitcoin be used as a replacement for existing currencies ?

"I have no similar idea about what 1 Bitcoin should be buying today, tomorrow or next week. It might be more, but it sure as heck could be a lot less." - Kass
"The notion that there is an un-dilutable, fixed amount of cryptos is simply wrong." - Kass