Only Invest in Bitcoin if You are “Very Wealthy,” Says Former FDIC Chairman
As Bitcoin moves close to $50,000, hitting a new ATH at $49,000 on Thursday, new detractors keep rearing their skeptic heads, advising people to not invest in the digital currency, which has surged nearly 12x from its March low.
“Stay away from it,” said Sheila Bair, one such critic, on Bloomberg late Wednesday. Bair, who was a key regulator in the heat of the 2008 financial crisis, further went on to say,
“It’s volatile. It’s at nosebleed levels now. We don’t know how sustainable that is.”
According to her, if one is rich enough, only then they should invest in the volatile assets which have been the best promising asset of the last decade and of 2020. Bair, former FDIC chairman said,
“If you’re a very wealthy person with some money to risk, fine, but no — I don’t have a lot of confidence in it.”
Bair is on the board of Paxos, the firm behind PAX stablecoin, and another blockchain-technology company Spring Labs.
Interestingly, Bair’s comments came soon after the oldest bank of the US, Bank of New York Mellon Corp., announced that it would hold, transfer, and issue Bitcoin and other cryptocurrencies, including stablecoins, for its clients on the back of increased demand.
This week, the crypto market received a lot of bullish news with Mastercard announcing the integration of crypto to its network. This, according to Ed Moya, senior market analyst at Oanda Corp., confirms “the fundamental shift that financial institutions are committing to cryptocurrencies” and is great news for cryptocurrencies’ mainstream acceptance.
“It will likely continue to keep the excitement going for Bitcoin.”
Tesla also bought $1.5 billion worth of BTC while Twitter is considering adding Bitcoin to their balance sheet, with both Uber and GM evaluating accepting Bitcoin as payments.
Sheila Bair Former FDIC Chairman
“The problem with Bitcoin is it is so volatile. So its original promise as a method of payment really, its volatility gets in the way of its usefulness.”
“I’ve always been more interested in the technology that underpins Bitcoin.”