Doug Casey on Cryptocurrencies: "They're a Speculative Medium"
It’s been an exciting year for crpytocurrencies like bitcoin and ethereum, but Doug Casey of Casey Research warns investors they’re “just speculative vehicles” in this video interview with Kitco News.
2017 has certainly been a hot year for cryptocurrencies with crypto trailblazers like bitcoin reaching highs of nearly $3,000 a token, while ethereum has soared above $390. Recently, however, digital currencies recorded record lows and even lost significant amounts in market cap.
For example, while bitcoin has rallied from $959.14 on January 1 to its high of $2,910.56 on June 11, on Sunday (July 16), the digital currency dropped as low as $1,758.20. The story is similar for ethereum: the cryptocurrency started the year at $8.38 a token and reached its high of $391.31 on June 13, but also took a hit over the weekend, falling 20 percent to $130.26.
By Wednesday (July 19), the two digital currency mammoths were back on track, with bitcoin reaching $2,273.23, while ethereum soared back above $200 a token to $202.52.
With that in mind, Doug Casey of Casey Research recently did a video interview with Kitco News to discuss this year’s “crypto-craze.”
When asked whether he considers them currencies, Casey said “they’re a speculative medium,” and that [you] should “consider them like penny stocks and treat them that way.”
“They’ve been … a fantastic, unbelievable bull market where people have not gotten just 100-to-1, but 1,000-to-1,” Casey continued. “More than that, these things have blossomed like mushrooms after a rainstorm.”
Casey also said that cryptocurrencies are an “excellent way” to transfer assets between countries, highlighting that they’re low cost and work instantly. That said, Casey added that [you] can’t “buy them now and look at them as a stored value.”
For more on what Casey had to say, watch the video below:
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.