Bitcoin Needs to Be Gold-Backed to Have Value, Says Prominent Investor Mark Mobius

Libra Coin News
Thu, 09/05/2019 - 11:49
Yuri Molchan
A famous old-school investor Mark Mobius states that Bitcoin would look much more interesting if it were backed by gold, not by mere faith of crypto enthusiasts
Cover image via twitter.com
Contents

While speaking on a CNBC’s Squawk Box show, Mark Mobius expressed an opinion that Bitcoin, being the most attractive on the crypto market, would look even more so if it were backed by gold. The latter, he believes, remains a safe haven in the market at the moment.

Mobius says just faith in BTC is not enough

While answering the question of the TV anchor, Mobius stated that a whole generation of people believes in the Internet and now in blockchain and they trust DLT to back cryptocurrencies. He pointed out that since fiat money, such as USD, is not backed by gold anymore, it is also backed by people’s trust in the power of their government.

Still, he stated that if Bitcoin fans take a closer look at what their currency is backed by (by nothing, he basically meant) they might realize that this is quite a risky situation.

In gold we trust, states Mobius

Now that gold has hit a 6-year high in price and many central banks are carrying out quantitative easing programs (printing cash, basically), many from the old guard of investors will turn their focus of attention towards gold.

Related
Samsung to Come up with New ‘Crypto’ Smartphone with Free Tokens Preloaded in the Wallet

Anthony Pompliano’s opposite view

However, an outstanding investor from a newer generation, Anthony Pompliano, believes that in this situation it is reasonable to buy not gold but Bitcoin. 

In his numerous interviews and talks on CNBC and on his Twitter page Pompliano tries to convince the audience that Bitcoin is getting more and more exposure to institutional investors these days.

Once he stated that nowadays it is irresponsible for a financial institution not to have Bitcoin in its portfolio.

Bitcoin, he says, will become more and more popular among institutions and the BTC price is going to rise in the short term, due to the growing interest and the halving expected in May 2020.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.