‘Big Short Fame’ Steve Eisman Does Not See The Value of Cryptocurrency.
Steve Eisman wonders why cryptocurrencies exist
Steve Eisman, the millionaire who got famous for predicting the 2008 American financial crisis has come on record against cryptocurrency. While speaking to about 1,500 attendees in the CFA Institute – a global association of investment professionals, Mr. Eisman said;
“I clearly do not understand how virtual currency works. What value does it add to the economy? I don’t see the need of cryptocurrency, don’t want it and won’t invest in it.”
Mr. Eisman was speaking yesterday during his presentation at the annual CFA conference in Hong Kong. His statements echo feelings of Charlie Munger and Warren Buffet on the same topic. The two have come out openly and bashed cryptocurrency claiming they ‘do not understand it’.
Though admitting to ‘not understand’ crypto, Mr. Eisman is of the opinion that digital currency has gained popularity because of two factors. According to him, crypto is driven by speculation and money laundering. Eisman believes these two factors propel the uptake of virtual currency. He declaires he has never invested in nor shorted cryptcurrencies as he is simply doesn’t ‘touch it’. All that said, he is of the opinion that the crypto space should be heavily regulated.
Unlike Eisman, Michael Lewis – author of The Big Short has a different opinion. Lewis opines that cryptocurrency is popular because it lacks a central authority. He says people distrusts central authority and fear governments may not work. Bitcoins enjoy they luxury of having no government hence driving its value amongst governance skeptics. Micheal Lewis takes the credit for bringing Eisman to the limelight through his bestseller in 2010. The book was later adapted into a major motin picture. Other than The Big Short, Lewis has authored a number of other books including; Flash Boys, Moneyball, and Liar’s Poker.
Another shorting venture
Keeping up with the cause of his fame, Eisman has set his eyes at shorting the Deutsche Bank. He believes the bank has profitability issues and has not kept up with technological changes. Furthermore, the bank is under capitalized and will probably lack for funds next year. Curiously, he is not interested in shorting cryptocurrencies.
Eisman joins the list of bigwigs slamming cryptocurrency swearing never to invest a dime in them. Even so, more people continue to invest in cryptos.