Mark Mobius compared cryptocurrencies to religion
Legendary investor Mark Mobius believes that cryptocurrency is fun and speculation. According to him, it is a religion, not an investment tool.
In an interview on CNBC, Mark Mobius said that digital coins should not be used as an investment tool. They are entertainment. For those who want to manage capital, the founder of Mobius Capital Partners advised to look more closely at stocks. They protect against inflation.
“Bitcoin and cryptocurrencies are a religion,” he said. “People believe in them, people think they’re getting rich, and that’s fine. As long as the music is playing, everything is great. But when the music goes silent, the real problems start.”
This so-called music has driven bitcoin and ether, the two largest cryptocurrencies by market capitalization, to historic highs. Even meme tokens dogecoin and shiba inu coin ranked in the top 10. Still, Mobius thinks stocks will help hedge inflation, which will drag on until 2022.
“Eventually, you have to go back to stocks anyway,” Mark Mobius said.
Who is Mark Mobius?
Mobius, a pioneer investor in emerging markets, has had doubts about cryptocurrencies before. In a September interview with Bloomberg, he said bitcoin as a means of payment would not take root in El Salvador. “You don’t need bitcoin, you don’t need cryptocurrency,” he said at the time.
Mobius is not the only prominent financier who is negative about cryptocurrencies. JPMorgan, in particular, also called for investing in bonds and staying away from cryptocurrency.
The global investor stated that he is now looking for the finest prospects in India and Taiwan for both software and hardware, showing that he is optimistic about the future of technology.
Mobius also stated he’s keeping an eye on the US market, claiming it has a lot of promise despite equities being near record highs. “We anticipate the United States market will continue to prosper and do well,” he said. Many American businesses are also profitable in emerging regions, he continued.
The key issue for the US market, according to Mobius, is the possibility of increased interest rates, as investors await a signal on probable rate hikes when the Federal Reserve concludes its two-day November meeting on Wednesday afternoon. Central bankers, on the other hand, are largely expected to announce a reduction in the quantity of bonds they buy each month.