Dennis Gartman is still not convinced that Bitcoin will not fall to zero.
Bitcoin (BTC) has won over several financial gurus in 2020 in the context of a difficult year for the U.S. economy. However, some market experts, such as Dennis Gartman, remain skeptical about the digital asset.
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Gold and Crypto Code are not really equivalent, according to Gartman’s interview on Tuesday with Bloomberg. „Gold has been around for thousands of years, Bitcoin has been around for 20 years,“ he said. Gartman published a series of financial commentaries over 30 years, called The Gartman Letter.
But Bitcoin hasn’t existed for 20 years. The asset’s pseudonymous creator, Satoshi Nakamoto, published the written framework for Bitcoin in 2008, and the asset was officially launched on the web in 2009.
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„Bitcoin is the gold of the Millenials, I understand that, I understand that,“ said Gartman. „I’ll never understand Bitcoin in terms of being able to buy it at $10,000, $15,000, $20,000; I’ll leave it to the people who are wiser, smarter or braver than me.
As many have projected before him, Gartman believes that the price of Bitcoin will eventually fall. „I fear that once, in the not too distant future, the monetary authorities, the various central banks around the world, will refuse to give up their monopoly on monetary policy and intervene one day and Bitcoin will be at zero,“ he said, adding:
„But can it get to $100,000 before that? John Maynard Keynes once said that the market can remain illogical for longer than you or I can remain solvent, and right now it seems totally illogical to me.
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However, Gartman showed no resentment against Bitcoin market participants, simply explaining that he prefers gold to digital currency. He also mentioned the limited supply of Bitcoin and the arguments for the expected increase in the asset price as a result. „Now there are what, 7,000 different crypto-currencies out there,“ he added, postulating:
„There’s an infinite amount of finite quantities of coins, so I think the fun, the joy, the enthusiasm for Bitcoin and cryptomontages will eventually die.
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On the opposite side of Gartman’s sentiment, 2020 has seen a growing trend of traditional financial players allocating capital to Bitcoin.