What Does Renowned Investor Gary Shilling Mean By Calling Bitcoin A Black Box

One of the most influential stock investors, Gary Shilling thinks that Bitcoin is a “Black Box” and stays as far away from it as possible.

He explained that he tried to learn about Bitcoin from one of his friends who is a West Coast-based venture capitalist, but he purportedly failed to explain the concept in-depth. As such, he went on to liken Bitcoin to traditional scams, where someone set up a facade to collect money, before leaving the continent cash-in-hand, never to be heard from again.

In closing, he stated:

“I’m just very suspicious of things that are not transparent. If I can’t understand it, I won’t invest in it.”

The fact that Shilling thinks that Bitcoin is not transparent itself should dismiss his opinions. But he himself admitted that he doesn’t understand the technology. People who heard his interview immediately understood that he was clueless about his position.

One of his replies noted:

Others added that he has been shilling (pun intended) for corny capitalism till now will obviously hold the same opinion. He is not the lone traditional investor to have this position. Warren Buffet had initially called Bitcoin “Rat Poison.” That was almost the same time he went bullish on Apple Stocks. If you have been following the financial news, you should know that Apple stocks have been a disaster, losing almost a third of its value in just the last 3 months.

Shilling likened Bitcoin to the South Sea Bubble of the 1700s. Stocks in the South Sea Company were traded for 1,000 British pounds (unadjusted for inflation) and then were reduced to nothing by the latter half of 1720. A complete crash, which would be heralded by the folding of banks, was avoided due to the prominent economic position of the British Empire and the government's help in stabilizing the banking industry. The British government outlawed the issuing of stock certificates, a law that was not repealed until 1825.

Although the situations are not same, people like Shilling and Buffet keep going back to outdated economic concepts. We can be sure that these old-school wall street investors do not know much about emerging technology and we should get our advice from someone who does.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide