Sam Zell Remains Bearish on Bitcoin Despite Massive Drop

During a recent appearance on CNBC’s “Squawk Box,” American billionaire businessman and philanthropist Sam Zell said that Bitcoin still was not cheap at the $21,000 level.

“I’ve basically stayed away from Bitcoin at all costs,” said the real estate mogul.

Zell admits that he still struggles to understand the flagship cryptocurrency’s security model.

The billionaire believes that any cryptocurrency that is not backed by the government in one way or another is unlikely to work.

Earlier this Wednesday, the world’s largest cryptocurrency was just a hair’s breadth away from dipping below the $20,000 level, reaching an intraday low of $20,079.

With the Fed being widely expected to announce its biggest rate hike in 28 years later today to curb inflation, extremely bearish sentiment continues to persist.

 Yet, some believe that Bitcoin is now in extremely oversold territory. Fidelity’s Jurrien Timmer has pointed to the cryptocurrency’s strong fundamentals to make the case that Bitcoin is actually cheaper than it looks right now.

Zell is among those who have been dismissing cryptocurrencies for years. In December 2020, he said that he was “skeptical of Bitcoin,” but he admitted that it could be the answer.

Equity Group Investments, Zell’s private investment firm, was founded by the billionaire more than 50 years ago. It is known for its original and contrarian approach to investing.
     
Last May, Zell revealed that he had bought gold due to growing inflation that he claimed was reminiscent of the 1970s.

However, just like Bitcoin, gold has seemingly failed the inflation test, recently dipping to the lowest level in 18 months.