Investor derides cryptocurrency as ‘religion’ over real currency

Remarks came as US Federal Reserve due to announce reduced bond buying

Gino Spocchia
Wednesday 03 November 2021 18:45
Investor derides cryptocurrency as ‘religion’ over real currency
Leer en Español

An emerging markets investor has derided the emergence of cryptocurrenciesas as a “religion”, and called for investors to return to trading in real currency.

Speaking with CNBC’s Squawk Box on Wednesday, well-known investor Mark Mobius decried the rise in digital currencies, which reached all time highs before he went on air.

Cryptocurrencies including Bitcoin, Solona and Ether are now worth more than the world’s dominant banks combined, with Bitcoin on its own worth more than Meta, the firm formerly known as “Facebook”.

Mr Mobius denied that cryptocurrencies were worthwhile in the long-run, however, and alleged: “It’s not an investment, it’s a religion”.

“People should not look at these cryptocurrencies as a means to invest. It’s a means to speculate and have fun. But then you got to go back to stocks at the end of the day,” Mr Mobius said.

The investor, who formerly worked for the World Bank’s Global Corporate Governance Forum and is founder of Mobius Capital Partners LLP, went on to argue that currency devaluation was the reason why real currency and trading in stocks was better.

“Stocks definitely are the answer because the devaluation of currency is not going to go away, which means inflation is going to continue at a high rate going forward,” said Mr Mobius.

He told CNBC in September: “If you look at the fact that money supply is up 30 per cent only in the US, you’ll realise that globally we have a lot of money sloshing around, and I think that money is going to continue going into the markets”.

The US central bank had been buying $120bn (£80bn) in bonds a month during the Covid outbreak to balance the market and avoid rising inflation, which decreases the worth of stocks.

Many have argued that cryptocurrencies are in fact better for investors, with billionaire Paul Tudor Jones telling CNBC last month that he thought Bitcoin was a better bet against inflation than gold.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies


Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in