No one can say where or when the next financial bubble will occur, but in the meantime, Nobel Prize-winning economist Richard Thaler says he’s avoiding making a investment: bitcoin.
Thaler, sometimes called the “father of behavioral economics,” is an open skeptic of bitcoin. Thaler told Stephen Dubner that, when it comes to investing, he follows billionaire investing mogul Warren Buffett’s simple advice.
“Warren Buffett says a lot of smart things, and one of the things he says is, don’t make investments in things you don’t understand,” Thaler says. “And I have no clue when it comes to bitcoin.”
Bitcoin is just one of many forms of cryptocurrencies that are used as digital currency and are accepted by a select amount of businesses and merchants. Bitcoin is also currently the world’s most valuable virtual currency by market value, trading at more than $6,700.
“I don’t know why anyone engaged in strictly legal activities would want to use a currency that is so volatile,” Thaler says.Trade crypto now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.
GENERAL RISK WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
76% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.