Dennis Gartman: ‘Bitcoin is the Millennials’ Gold’ & Should Be Left to ‘Wiser or Courageous’ People
“Market can remain illogical longer than you or I could remain solvent. And right now bitcoin seems to me to be utterly illogical,” says Gartman.
Dennis Gartman remains a gold bull with no interest in Bitcoin, despite the latter beating yellow metals’ performance by a wide margin. Despite bullion’s pullback since hitting its all-time high in August at $2,075, Gartman believes,
“You have to stay in gold. I think that there's no question about it.”
The chairman of the University of Akron’s Endowment Investment Fund does understand that the traditional safe haven asset is getting “competition from Bitcoin” but according to him, the digital asset will “disappear eventually.” He added,
“Perhaps it's just old age on my part wanting to be involved in the gold market.”
Gartman doesn’t believe in the infinite supply of the crypto asset pushing the price of Bitcoin higher because “there are seven thousand various cryptocurrencies out there. There's an infinite amount of finite amounts of currency.”
As such, he thinks all the fun and enthusiasm over Bitcoin and cryptocurrencies will go away eventually. Not right away, but maybe in two to four decades. Gartman said,
“Perhaps I'm just an old man with just a sense of history. Perhaps I shall be wrong. Perhaps Bitcoin becomes the currency of the future. If so it shall do so without me.”
BTC is “utterly illogical”
With all the central banks around the world working in coordination, from the US Federal Reserve Bank, ECB, Bank of Canada to the People's Bank of China and Russian Central Bank, “that's going to drive gold prices higher” whether it is in the dollar, euro, yen, or renminbi, he said.
“I think gold gets stronger across the board for a long price,” Gartman told Bloomberg on Tuesday.
On Bitcoin’s equivalency to gold, Gartman doesn’t believe it as the precious metal has been around for thousands of years and Bitcoin has only been for just over a decade. He said,
“Bitcoin is the millennials’ gold. I understand that. I get that. I will never understand Bitcoin as far as being able to buy it at $10,000, $15,000, $20,000. I should leave that to people who are wiser or smarter or more courageous than I am.”
Gartman’s fear about the world’s largest cryptocurrency is primarily regulation as he feels in the “not too distant future, the monetary authorities, various central banks around the world are going to refuse to give up their monopoly on monetary policy.”
This means Bitcoin has been rendered zero. But before becoming valueless, can it go to $100,000?
“As John Maynard Keynes once said the market can remain illogical longer than you or I could remain solvent. And right now bitcoin seems to me to be utterly illogical,” said the retired editor of The Gartman Letter. He added,
“Again those who have done well in it. I wish them that they continue to do well but they shall still do so without me. I'd rather I'd much rather own gold.”