Billionaire’s Opinions About Bitcoin & Cryptocurrencies, ‘The Greater Fool Theory’

Bitcoin is bigger than the internet. It’s bigger than the Iron Age, the Renaissance. It’s bigger than the Industrial Revolution. This affects the entire world and it’s going to be affected in a faster and more prevalent way than you ever imagined. its price will reach USD 250,000 for one Bitcoin, within four years, “spirits told me.”Tim Draper

Billionaire’s opinion about bitcoin

The world’s richest of the rich are often asked about their opinions on current matters, especially if it pertains to the financial sector. Their opinions on Bitcoin carries quite a lot of weight in any and all technology-related fields. This is just the opinion of one of the most successful investors, Tim Draper, who has been calling bitcoin the biggest revolution in the finance sector and he is very optimistic about replacing the fiat currency with cryptocurrencies in next few years. He believes that within five years, cryptocurrency will become the primary means of payment. One of his famous statements is;

In five years you’re going to walk in and try to pay fiat for a Starbucks coffee, and the barista is going to laugh at you, because they’re going to say, ‘What is this? Are you counting out pennies? Give me shells?.’

He further said, “Because all of this engineering effort, all that excitement, this focus is really on Bitcoin and all of the cryptos around it. And I think that’s what we’re all going to be using and paying with.”

Starbucks is keen on blockchain technology

Starbuck’s executive chairman, Howard Schultz, refused the idea of bitcoin integration with Starbucks as they are planning to have cashless stores all over the world but he claimed in an interview;

Starbucks could be one of the first companies to have a proprietary digital currency integrated into a new Starbucks app.

Starbucks has more than 70% of outlets in China that are cashless and according to Ex-Chair, Howard Schultz, they are planning to switch over to blockchain technology. He was also enthusiastic about bitcoin’s underpinning technology, saying, “Blockchain technology is probably the rails on which an integrated app at Starbucks will be sitting on top of.”

Billionaire Hedge fund manager’s take

Marc Lasry, hedge fund manager, and a billionaire said that the price of Bitcoin could reach $40,000 as it goes more mainstream and as long as an average American can buy it, the price will be going up. As it gets more into the mainstream, and as more markets end up allowing it to trade where it’s freely tradable, it’s price will continue to rise and to him, bitcoin investors will be making 5x to 10x their money, in three to five years. In a recent Interview with CNBC, he explained that the reason why he likes Bitcoin is that it’s the one everybody is going to come to. He further claims that after buying his first bitcoin, a few years ago, he has invested 1% of his personal or Lasry’s family funds into Bitcoin.

Goldman Sachs’ opinion on crypto

Investment banking giant Goldman Sachs is looking to add cryptocurrency trading. The new CEO of Goldman Sachs will be the firm’s current chief operating officer, David Solomon, who also worked as Chief Operating Officer of the firm, said last month during an interview that bank is looking in to adding further bitcoin and cryptocurrency services to its portfolio. Investment banking giant, Goldman Sachs, is moving ahead with plans to set up the first Bitcoin trading operation at a Wall Street bank. While the exact launch date of the new trading operation is not yet set, the move came after the bank’s board of directors signed off on the initiative.

Opinions against bitcoin and crypto

There are some very straight farward optimistic opinions for Bitcoin but at the same time, Larry Fink, CEO of BlackRock, said that the world’s largest asset manager has put together a team to look at blockchain technology and cryptocurrencies, and he not see massive investor demand.

Similarly, Ken Griffin, an American investor, hedge fund manager, and philanthropist, is not a fan of Bitcoin. In an interview during the Delivering Alpha Conference, with Steve Bannon, former chief strategist for President Donald Trump, he said;

I have a hard time finding myself wanting to be in the position of being a liquidity provider to a product that I don’t believe in.  I don’t have a single portfolio manager [of mine] who has told me we should buy crypto, not a single portfolio manager.” Ken Griffin

Howard Marks, another investor, spoke at the same conference. He said, “It’s not an investment it’s a trade, In the long run, I think it will be shown not to have any substance”. He further explained and tried to give the perspective of bitcoin investors. He said;

People who buy Bitcoin, are only doing so because they hope someone will buy it from them at a higher price. When I was a kid, they called it “the greater fool theory”.

Who is going to be right, is probably the question of the decade, as the world shifts to watch the young industry grow. Key financial institutions battle among themselves as to who will be first to implement blockchain in their own solutions.

Muhmmad Furqan

Furqan is a financial markets expert. A regular trader of cryptocurrencies and hold some investments in Bitcoin, Stellar, IOTA and OST. Contributes with latest industry insights. Contact the editor at editor.opinions@blockpublisher.com

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