Due to the lack of fundamental economic factors in assessing the value of the cryptocurrency, the bitcoin price with a high probability will fall to zero. This leading economist of Vanguard, Joe Davis wrote in a column for the portal ETF.com.
He pointed out that cryptocurrency may not be viable applications. So, it can not be perceived as a form of money because it is not an effective means of accumulation.
“Unlike stocks and bonds, crypto-currencies do not cause cash flows such as interest payments or dividends. And if the price of national currencies is determined by the underlying economic activity of their producing countries, the price of the cryptocurrency is based solely on speculation,” said Joe Davis.
Economist urges investors to refrain from investing in bitcoin, not to restrict access to “tried and true asset class”.
“The acceleration of innovation and growth of competition, most networks and related cryptocurrencies can lose its relevance and, like the Tulip bulbs in seventeenth century Holland, to rise to unprecedented heights before the speculative bubble will burst,” — he wrote.
At the same time, Davis noted that the company Vanguard under which assets are $5.1 trillion, already uses blockchain technology and refers to it with great enthusiasm.
We will remind, earlier in may, CEO CoinShares Danny masters said that bitcoin will not be able to beat the historical highs it has not changed its structure.