A new voice to the chorus calling bitcoin a dangerous bubble. This time it was Yale University’s senior fellow Stephen Roach.
Roach, who is a former Morgan Stanley’s Asian chief, said: “bitcoin is a dangerous speculative bubble by any shadow or stretch of the imagination” and a “toxic concept for investors.”
“I’ve never seen a chart of a security where the price really has a vertical pattern to it. And bitcoin is the most vertical of any pattern I’ve ever seen in my career,” the expert said.
Recently, Vitor Constancio, VP of the European Central Bank, compared the digital currency with the tulip mania in the 17th century in the Netherlands while Thomas Peterffy warned investors saying bitcoin could lead to a new financial crisis.
Roach told CNBC that legitimization of bitcoin was risky, because there is no “intrinsic underlying economic value” to the digital currency. “Like all bubbles, they burst,” he added.
“They go down, and the one who’s made the last investment gets hurt the most, there’s no question about it.”Trade now
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