Hedge fund manager, venture capitalist, entrepreneur, author, and podcaster James Altucher claims that Bitcoin is set to become a legitimate and real investment. He added that Bitcoin is no longer for day-traders who want to play the financial game.
Altucher appeared on CNBC’s “Squawk Alley” to explain Bitcoin’s value: “Bitcoin is not a penny stock — it’s not something you buy one day and sell the next day for little gains.” He added, “You have to be a long-term believer that cryptocurrencies solve huge problems that paper currencies have.”
Altucher continued, “Cryptocurrencies will replace some or all paper currencies in the long run. Institutions aren’t yet in bitcoin, but they will be … we are in inning 0 of this asset class.”
His belief in the future power of Bitcoin comes at the same time when bitcoin’s price plummeted to $10,000 or approximately 50 percent from its previous high.
However, he does admit that majority of cryptocurrencies are frauds, declaring that “98 percent of cryptocurrencies are scams or frauds.”
Altucher similarly acknowledges the need for cryptocurrencies to be regulated: “More regulation will happen, and that’s a good thing.”
Structure Capital’s Jillian Manus is a tech investor who believes the inherent dangers involved in various cryptocurrency trends. She described initial coin offerings as “very dangerous” and is akin to “the Wild West without a sheriff.”
Altucher is more optimistic in his view of the bitcoin. Besides owning this cryptocurrency, he intends to purchase more tokens despite its price is down 13 percent, noting that such a slight plunge is a mere opportunity to buy more.
But Christopher Harvey from Wells Fargo Securities believes that the market for cryptocurrency was full of “froth”. He added that a sell-off was inevitable, the only question was when.
Altucher is adamant in his claim that once regulation is applied, bitcoin investors will readily purchase more of it. He added, “This is a global phenomenon”.