Legendary emerging-market investor Mark Mobius is changing his tune on Bitcoin and cryptocurrency.
After once calling Bitcoin a “real fraud”, Mobius told Bloomberg’s Daybreak Europe podcast he now sees a bright future for BTC and the crypto market at large.
“There’s definitely a desire among people around the world to be able to transfer money easily and confidentially. So that is really the backing to Bitcoin and other currencies of that type. So I believe it’s going to be alive and well.”
Chief strategist at eToro, Mati Greenspan, says the old guard is swiftly shifting from the traditional financial system.
He notes the change of heart from Mobius is in line with the flip from Oxford University historian Niall Ferguson, the one-time crypto skeptic “who literally wrote the book on the evolution of money” and now supports Bitcoin. Says Greenspan,
“Still, being a pragmatic investor, Mobius has not yet himself invested in Bitcoin due to the extreme volatility.
Mark!!… The volatility is one of the most attractive qualities of crypto from an asset managers perspective. The idea of asymmetric risk allows us to use this unique and uncorrelated asset class to greatly increase our return on risk in any otherwise well-diversified portfolio.
Just as I, in my portfolio, am holding about 3.5% in emerging markets, I believe that one day soon asset managers around the world will diversify with crypto.”
Mobius says he’s not on the same page as Greenspan just yet. Despite his newfound optimism for the space, Mobius says you won’t see him investing in crypto anytime soon due to the high risk involved.