David Stockman says, Bitcoin Fever will Burn Out in the Spectacular Crash
January 2, 2018 10:33 am
David Stockman, President Ronald Reagan’s former director of the Office of Management and a relentless Wall Street bear, has warned the investors that the cryptocurrency growth will end miserably. He said that first, it was the stock market. But now, it is bitcoin.
Stockman told CNBC’s “Futures Now“:
“It’s basically a class of really stupid speculators who have convinced themselves that trees grow to the sky, it will burn out in a spectacular crash. All of these latter-day speculators will have their hands burned to a crisp, and they will learn the proper lesson.”
Stockman’s latest prediction is not exclusive to bitcoin
He has been calling Bitcoin as a “gigantic, horrendous storm” which could soon hit the stocks. In September, he warned the investors that a 40 to 70 percent correction wasn’t too far down the road.
He blamed the Federal Reserve and central banks for creating the hype surrounding the stock and cryptocurrency markets. He said that a lot of liquidity was pumped into the marketplace to deal with the 2008 global financial disaster mentioning that not even the regulators can improve the shallow situation.
“What we really need to do is not think these are regulator problems, but understand they’re monetary problems, t’s an irrational, overheated market like never before.”
From the past two years, bitcoin prices have increased by more than 3,000%. It’s excited price swings have sparked debates on the Wall Street over how much it’s really worth. The other cryptocurrencies such as Litecoin and Ethereum and Ripple have also increased.
Stockman says we can’t put a price tag on them.
“I have no idea. I mean it could double or triple from here or it could fall to zero. But the point is that it’s not real money because real money for transactions has to be stable.”
“Anytime Wall Street sees an opportunity to shear the sheep, and they see the sheep stampeding to the slaughter, they line up with some new gimmick to take advantage of the circumstances. That’s all.”
“There is nothing that’s being validated by the opening up of a futures market. It’s just everybody trying to get on the train for the ride.”