The head of the world’s largest hedge fund dismisses Bitcoin and other cryptocurrencies as “no intrinsic value” – but they’re good for trading
The head of the world’s largest hedge fund has dismissed Bitcoin and other crypto currencies as “not valuable”.
Luke Ellis, CEO of Man Group, compared the digital currency craze to the 17th century tulip rush, when the value of lightbulbs soared and then crashed.
“If you look at cryptocurrencies as a whole, it is a pure trading instrument. There is no inherent value in it. It’s a tulip bulb, ”he told the Financial Times.
The comments came as Bitcoin surged nearly 20 percent to $ 40,000 (£ 28,920) amid speculation that Amazon might use it as a payment method. Its value has swung sharply this year, hitting nearly $ 65,000 (£ 47,000) in April before falling below $ 30,000 (£ 21,680) last week.
Ellis, whose company has assets of $ 92 billion.
He said digital currencies are “something to trade because they go up and down a lot”.