An emerging market investor mocked the emergence of cryptocurrencies as a “religion” and called on investors to return to real currency trading.
Speak with CNBC Scream Box Wednesday, Well-known investor Mark Mobius has denounced the rise in digital currencies, which reached all-time highs before its release.
Cryptocurrencies such as Bitcoin, Solona, and Ether are now worth more than the world’s dominant banks combined, Bitcoin alone is worth more than Meta, the company formerly known as “Facebook.”
Mr Mobius, however, denied that cryptocurrencies were worth it in the long run and alleged: “It’s not an investment, it’s a religion.”
“People shouldn’t see these cryptocurrencies as a way to invest. It’s a way to speculate and have fun. But then you have to get back to stocks at the end of the day, ”Mobius said.
The investor, who previously worked for the World Bank’s Global Forum on Corporate Governance and is the founder of Mobius Capital Partners LLP, went on to say that currency devaluation is the reason real currency and stock trading was better.
“Stocks are definitely the answer because the currency devaluation is not going to go away, which means inflation will continue at a high rate going forward,” Mobius said.
He told CNBC in September: “If you look at the fact that money supply has only grown 30% in the United States, you will realize that globally we have a lot of money. that is dragging on, and I think that this money will continue to go to the markets ”.
The US central bank had bought $ 120 billion (£ 80 billion) of bonds per month during the Covid outbreak to balance the market and prevent rising inflation, which decreases the value of stocks.
Many have argued that cryptocurrencies are actually better for investors, with billionaire Paul Tudor Jones telling CNBC last month that he thinks Bitcoin is a better bet against inflation than gold.