Tim Bond, portfolio manager at Odey Asset Management, warned that bitcoin makes no sense and called cryptocurrencies a particularly bad asset class. He argues that bitcoin has no real public purpose except as a tool for speculation and as a means of laundering the proceeds of crime.
The fund manager establishes bitcoin as aasset class.
Tim Bond, partner and portfolio manager at Odey Asset Management, recently warned against bitcoin in an interview with Marketwatch. The company was founded in 1991 by billionaire Crispin Odey and currently manages over $3 billion in funds.
Prior to joining Odey Asset Management in 2010, Bond spent 12 years at Barclays Capital as Managing Director and Global Head of Asset Allocation. Previously he worked at Moore Capital as a portfolio strategist and for 10 years as a strategist and trader at Tokai Bank Europe.
With the price of bitcoin hitting all-time highs several times this month, Bond is reported to have said:
In my opinion, bitcoin is a particularly bad asset class. If bitcoin begins to displace currency, the ability of governments to tax, spend and redistribute money will be significantly weakened.
The fund manager, who revealed that neither he nor his company has an interest in bitcoin, began by warning that bitcoin has no real public utility except as a tool for speculation and a way to launder the proceeds of crime, the publication reported.
He further claimed that bitcoin could prevent society from functioning efficiently and ethically, arguing that cryptocurrencies are an extreme form of libertarian anarchism.
Fund manager Odey went on to talk about bitcoin mining, saying that it generates carbon emissions equal to the annual output of an average developed economy. In addition, Bond said that as the price of bitcoin rises, mining will intensify, leading to an even greater increase in carbon emissions, he said:
It’s hard to think of another human activity that is both completely unnecessary and does so much damage to the planet.
What do you think of Tim Bond’s opinion on bitcoin? Let us know your comments in the section below.
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frequently asked questions
What is the asset class of bitcoin?
Before we dive into this post, let’s focus on the structure of investing in cryptocurrencies rather than the underlying asset class itself. As we have discussed in other blogs, bitcoin is a volatile asset and not suitable for all investors.
Is bitcoin a better asset?
Bitcoin recently hit the $60,000 mark and became the best performing asset class of the decade with an annualized return of 230%, according to the data. … On a year-to-date basis, bitcoin has achieved a return of 230%, 10 times more than the Nasdaq 100, which was the second-best performing asset class.
Is bitcoin a real commodity?
Bitcoin is not a financial asset per se, but a real asset like software or the internet itself, and so the law of entropy applies; sustainable growth in the use of blockchain is not possible if only abundant energy remains available 24/7 – our strategic trajectory is not happy here.
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