Mobius Capital Partners CEO Says Trying to Predict Bitcoin Price is "Loser's Game"
Nicholas Otieno Nov 29, 2020 05:45
CEO of Mobius Capital Partners, Mark Mobius has become the latest Bitcoin critic to slam the unpredictable nature of BTC, comparing investment in cryptocurrency to gambling.
In an interview with Financial News media outlets, Mark Mobius, emerging markets asset manager and founder and CEO of Mobius Capital Partners, said that it makes no sense trying to analyze and predict the future price of Bitcoin because the cryptocurrency does not follow any pattern.
CEO of Mobius Capital Partners, Mark Mobius said:
“Trying to predict the price of Bitcoin is a loser’s game.”
Mobius stated that speculating on movements of Bitcoin’s price is similar to playing a lottery or gambling. He mentioned there is no reliable information that anyone can use to predict the cryptocurrency’s next move. He said:
“[Its rise is a] casino operation based on all sorts of rumors and speculation.”
Mobius’ observation comes at a time when Bitcoin was on the verge of reaching a record high of $20,000 earlier this week, but the cryptocurrency’s sharp rise was cut short after its price fell by almost 11% on November 26 – one of the biggest declines since March.
It is also a time when heavyweight investors are keen on making some predictions that the price could rise higher toward the end of the year, saying that the crypto asset is now in bubble territory.
However, Mobius pointed out that analyses and predictions are contradictory because there is no reliable way of predicting Bitcoin pricing or its movements. The emerging markets manager claims that investing in cryptocurrencies could be dangerously close to gambling.
While several big names in the investment landscape like billionaire investor Stanly Druckenmiller, Twitter CEO Jack Dorsey, and MicroStrategy CEO Michael Saylor have all praised Bitcoin in recent months, Mobius has been a vocal critic of the cryptocurrency. In 2019, Mobius raised concerns about blockchain saying that the technology could be broken into, arguing that anything that is created by human beings can be broken into. However, the only hope he would like to see and be interested in the crypto industry is a cryptocurrency backed by gold.
Whenever the Bitcoin price declines, its common for the voices of crypto critics to resonate even louder. Nouriel Roubini and Peter Schiff are some of the famous Bitcoin critics who have issued some warnings just like Mobius. Depsite the dissent on Bitcoin, the crypto market remains bullish and BTC has risen by 4.9% in the last 24 hours, the Bitcoin price is $17,819 at time of writing according to CoinMarketCap.
Crypto Price Prediction as A Market Literacy Tool
Any kind of forecast or prediction on the movement of cryptocurrency prices is important for educational and informative purposes. However, there is no analyst or software that has been able to consistently predict market movement correctly . If someone could accurately predict the price of Bitcoin, then the crypto market would definitely lose much of its purpose. But does not imply that price prediction is useless. Predictions are usually vital guidelines that provide clues and the general feeling of traders and investors and even influence the market for short periods.
Image source: Shutterstock
