Magellan’s billionaire co-founder Hamish Douglass warned that asset prices artificially inflated by a government and central bank stimulus package could face a “doomsday”. He also called the Bitcoin and cryptocurrency markets “one of the greatest mass illusions in modern history.”
Hamish Douglass: It is inevitable that Bitcoin and cryptocurrencies will fall to zero
The veteran investor said that when other speculative bubbles eventually chart their course and blow up, it is inevitable that crypto will collapse to zero as well. Douglass said, “Cryptocurrencies have a cult following; “It’s one of the biggest irrationals I’ve seen in a very, very, long time.” Hamish Douglass, co-founder of Magellan Financial Group, says, “Looking back 20 years later, this will be a case study of irrationalism.”
Millions and millions of people participate. Some people have never invested before and the only caravan they join is the cryptocurrency caravan. Almost like a religion.
Douglass “expects to be hacked” for cryptocurrency intentions
As we reported as , Bitcoin has increased by 235 percent over the last year, and at its current price of $ 31,800, it has increased 50 times in 5 years. The second largest cryptocurrency, Ethereum, has seen a 164-fold increase in value in five years and is trading around $1,910. Douglass said he expected to be attacked widely for his views on crypto, but he didn’t care.
Douglass said that when it comes to investment performance Magellan is not too alarmed by such asset bubbles as it has zero risk. He cautioned, however, that the growing popularity of cryptocurrencies could hurt investor faith in the event of a crash. He also warned that if cryptos pose a systemic risk that lifts the markets, the sentiment will take a contagious blow. The fund manager also defended Magellan’s defensive portfolio positioning and its poor performance over the past 12 months, citing increased risks around a valuable correction in equities.