Bitcoin has not established itself as a credible institutional investment says Scott Minerd, CIO of Guggenheim

Minerd, the CIO of Guggenheim, stated his view, while at Davos, that bitcoin and crypto were not credible investments, and that they were likely to be headed down a lot further.

Scott Minerd is currently attending the World Economic Forum Annual Meeting at Davos, where he was interviewed by Bloomberg Television yesterday.

Minerd said that one of his main concerns for crypto was that nobody had yet “cracked the paradigm” to enable its use as a currency. He reiterated that a currency needs to be a medium of exchange, a store of value, and a unit of account, but said that crypto was currently neither of these.

His view is that the entire crypto sector is “suspect”, and this includes stablecoins and everything else. He said that Bitcoin had not established itself as a credible institutional investment, and he added:

“It’s really become the market of a bunch of yahoos and backwaters, and I know I’m already going to be plastered on Twitter now for what I just said.”

When asked if he had any crypto-assets, Minerd said that his company had bought bitcoin at around $20,000 and that it had sold it at $40,000. He said that when the asset had reached $60,000 he thought it would correct, and then when it got to $30,000, he looked at it and thought “Why are we stopping here?”.

In Minerd’s view, bitcoin will probably go down to around $8,000 before everyone is flushed out. He said that his overall bearish stance was confirmed while attending the Hoover Central Bank Conference at Stanford.

He remarked that all the current and former Fed officials that he had heard speak at the conference were “extremely hawkish”. In conversation with them he said that they were all happy to see an “orderly decline” and for “financial conditions to tighten”.

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