Gary Shilling, an American financial analyst says Bitcoin is a Blackbox and one he is not willing to invest in. He made this revelation while speaking to Business Insider saying that Bitcoin is opaque and as such, its processes are not transparent. The analyst also attributed his reluctance to the inability to identify Satoshi Nakamoto, the creator of Bitcoin.
Bitcoin’s Downward Price Trend in 2018
Shilling’s responses came after Bitcoin’s downward price trend in 2018 given that it had reached an all-time high of $20,000 before tumbling down over 80 per cent and losing its value. As at press time, this is a digital asset that is trading around $3,800, and there are speculations from crypto enthusiasts like Antonio Pompliano that it might go lower than $3,000.
In Gary Shilling’s opinion, Bitcoin’s price performance is comparable to that of the South Sea Bubble. This is a scam which occurred in the 1700s where the South Sea Company’s stock kept rising due to the speculations it received, but in the end, began to decline until there was nothing significant left.
Shilling Says Bitcoin is a Guesswork
This is what Shilling sees Bitcoin as a guesswork that is being driven by rumours and may one day become too worthless to have any meaning. He also gave instances of Nakatamo who is currently holding billions worth of 980,000 Bitcoins and his sale alone can render the entire market worthless. The creator’s share seems to be higher when compared with other crypto enthusiasts who are only holding down on only a couple of Bitcoin’s worth.
Despite Shilling’s views, there are currently 503,000 addresses judging from the data provided by CoinMarketCap.com. Also, about 603 of these addresses have a Bitcoin that is worth more than $10 million. It’ll have to take hundreds of these people selling their assets and a meaningful part of it to see Shilling’s words come true.
Many Crypto Enthusiasts Turn a Blind Eye to Shilling’s Words
While many crypto enthusiasts have turned a blind eye to Shilling’s words, it has still been paid a great deal of attention to. This is because of his role as a financial analyst who had also in the 1960s’ predicted a recession which had occurred. Reports also hold that he was one of the few analysts that had predicted one of the greatest recession after that of the 1920s.
But if all goes according to the words of Jameson Lopp, a crypto enthusiast, then we can only expect the world of cryptocurrencies especially that of Bitcoin to be here to stay. Lopp is of the opinion that Bitcoin is at the forefront of a complex ecosystem and for the tenth year, it has refused to die.