Veteran Investor & Bitcoin Cynic Mark Mobius: “If BTC Continues to Grow I Would Have To Be A Buyer”
- Liquidity in the crypto industry will have people wondering what is the currency & where to go
- Currency is based on faith and many people believe in Bitcoin
- Central banks have been “irresponsible” by pumping money into the system creating possibilities for real crises
Speaking with Bloomberg Daybreak, Mark Mobius, the founder of Mobius Capital Partners and emerging markets funds manager talks about stocks, bonds, and Bitcoin.
In the global market, we have been seeing stocks and bonds rallying at the same time. Just as stocks have been trending up, yields have been trending down, which implies two very different pictures for the global economy.
Mobius says for a new buyer, bonds are not the place to be with lower rates. Holding bonds is “great” but right now the place to be is in stocks and gold.
As we already know, the bonds all over the world are slowly turning negative yields. France issued its first 10-year negative interest rate bonds and Germany’s bonds yields have fallen below the ECB’s deposit rate as investors bet on policy easing.
If an investor is not getting anything in the bank with these lower rates, Mobius says, it makes sense to have “little gold” in your portfolio.
This he says, is already happening. Russian and other central bankers are stocking up on gold again.
Currency is Based on Faith & Many People Believe in Bitcoin
Here, Mobius brings up cryptocurrency as he explains “with the kind of liquidity you're seeing out there people are gonna be wondering… what is the currency? where do I go?”
However, he still believes stock is the place to be as there you can see the dividend and earnings for the company that would be adjusted to the inflation rate.
Mobius might have mentioned Bitcoin more than twice, but he states he is not a buyer because he doesn’t know what the real value is and unless it is “so widely held and accepted,” it’s a different story. However, he says, it is something we have to “account for.”
“Let's face it all currency is based on faith and if you have faith in the dollar or faith in the renminbi or faith in the euro, whatever it is then you can use it.”
But the problem with cryptocurrencies, Mobius says is that they aren’t widely used except in a “lot of illicit activity” like drug transactions.
“But look at the end of the day there are many people who do believe in it and if it continues and grows then I would probably have to be a buyer and be involved in this,” Mobius said.
And this why, Bitcoin is Needed
During his interview, Mobius also talk about how central banks around the world have been “irresponsible” in the way they are handling the situation by trying to create inflation by pumping more money into the system and lower rates. Meanwhile, the market is trying to determine what the rate should be.
This he says means we are in a very confusing situation that “creates possibilities for real crises.”
And this is why Bitcoin matters which doesn’t have a centralized authority to print it out of existence. It is a deflationary and censorship-resistant cryptocurrency that will act as a hedge in the time of crisis.