Garry Shilling – a legendary investor and analyst – recently disclosed his opinion about Bitcoin (BTC). In an interview with Business Insider, Shilling called Bitcoin (BTC) a “Black Box,” adding that he will not invest in the digital currency anytime soon. The comments of Shilling are the most recent in the long list of negative remarks from investors about the status of Bitcoin (BTC) as both an investment option and a digital currency.
Over the past years, many prominent investors, including Charlie Munger and Warren Buffet, have been echoing similar sentiments. The crash of the digital currency market last year and the persevering bear market has also not helped to prove these skeptics wrong.
Gary Shilling Calls Bitcoin (BTC) a Black Box
The creator of Bitcoin (BTC) – Satoshi Nakamoto – is an anonymous figure, and this is the greatest complaint of Shilling about Bitcoin. Shilling feels the anonymity of the creator creates a lack of transparency for the technology.
During the interview, Shilling said, “I am just suspicious of things that are not very transparent. And if I cannot understand it, I do not want to invest in it.”
In addition, Shilling also drew parallels between the recent price action of Bitcoin (BTC) and that of the South Sea Bubble – a disreputable stock scam in the eighteenth century where the stock of the South Sea Company surged on false speculations, rumors, and claims investments before crashing to zero.
Shilling said an event that could send Bitcoin (BTC) escalating downwards would be the anonymous Satoshi – who allegedly owns 980,000 BTCs, selling his holdings. If Satoshi decides to sell his Bitcoin (BTC) holdings, the value of Bitcoin (BTC) would be on a continuous downward trend.
He also added that the anonymity of the creator of Bitcoin (BTC) has made many prominent investors stay away from the digital currency. The entry of these investors could have pushed the value of the digital currency significantly.
Not Everyone Agrees with the Assessment of Shilling
A lot of traditional analysts do not agree with Shilling’s assessment of Bitcoin (BTC). They were quick to dismiss digital currency, especially Bitcoin (BTC), as being a scam. Many analysts that are more exposed to emerging technologies hold opinions that are contrary to that of Shilling.
At a conference held in November last year, the chief economic advisor at Allianz – Mohamed El-Erian – talked about the future of digital currencies. He bullishly explained that the entrance of more institutional investors into the crypto market and an increase in adoption are some of the reasons why digital currencies are here to stay in the long run.
In a statement, Mohamed El-Erian said, “I think digital currencies will exist, they will become more and more widespread, but they will be part of an ecosystem. They won’t be dominant as some of the early adopters believed them to be. Adding that it is highly unlikely that they will replace fiat currency any time soon.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is trading at $3,799 after a decrease of about two percent over the past twenty-four hours. The current market cap of the digital currency is $66.04 billion and its trading volume over the past twenty-four hours is $2.74 billion.