Mobius blasts crypto as merely speculative
He sees stocks as the better bet
Bitcoin and Ethereum have soared since March 2020
Mark Mobius, the founder of Mobius Capital Partners LLP, has described cryptocurrencies as a religion and not investment in the sense of what the market knows of stocks.
Crypto is a ‘religion’
In an interview with CNBC’s “0Squawk Box” on Wednesday, the global entrepreneur said:
“It’s a not an investment it’s a religion.”
“People should not look at these cryptocurrencies as a means to invest…you got to go back to stocks at the end of the day,” he added.
He then went on to explain why, noting that cryptocurrency is “a means to speculate and have fun.”
Mobius is a renowned investor and fund manager, and even with other top guns in the investment space trooping into crypto on the back of Bitcoin (BTC) and Ethereum (ETH) rallying, he remains skeptical about the whole digital asset space.
“Stocks definitely,” he said, pointing to currency devaluation and inflation in general.
The investor believes recent monetary policies in the wake of the global pandemic make stocks better investments, alluding to the fact that money printing has seen US dollar supply shoot up by more than 30% over the past two years.
The global investor said he’s currently looking for the best opportunities for both software and hardware in India and Taiwan, indicating optimism around tech.
Mobius has highlighted the US stock market as one he’s watching closely, despite currently being heavily invested in Taiwan and India. With the Fed expected to announce the US is ready to cut on its stimulus spending, Wall Street could see continued growth, he added.
Bitcoin and Ethereum lead cryptos
While Mobius and a few other investment gurus have slammed Bitcoin and crypto as speculative assets and worth nothing much, the coin’s market and the sector, in general, are seeing a lot of growth and proving doubters wrong.
Institutional inflows into crypto are increasing, with the sector now worth hundreds of billions of dollars under management in Bitcoin and Ethereum among other assets.
Greater adoption, including in El Salvador where BTC is legal tender, is adding to growth in NFTs, DeFi, and Web3 as the broader crypto space slowly makes it to mainstream adoption.
Since last year, when Billionaire US investor Paul Tudor Jones, Tesla CEO Elon Musk, and MicroStrategy CEO Michael Saylor jumped on the Bitcoin bandwagon, BTC price has surged more than 350%. From lows of $3,800 in March 2020, Bitcoin has skyrocketed to highs above $67,000. Ethereum, on the other hand, has spiked from lows of $200 in the same period to top $4,600.