On Wednesday, global investor Mark Mobius referred to cryptocurrencies as a religion, as opposed to a means of investment. The investor joined many other crypto skeptics with the statement, which is also surprising considering how Bitcoin and Ether have sky-rocketed in value in the recent past.
On CNBC’s ‘Squawk Box’, Mobius stated that people should not be looking into crypto as a means of investment. Instead, he encourages people to dabble in it only as a means to speculate and indulge in some fun. He further says that – at the end of the day, it’s stocks that people come back to.
The founder of Mobius Capital Partners has plenty of experience in the field of investments, and places high value on stocks. He believes that they are the best option because of factors like currency and inflation. He states that the devaluation of currency is not going to leave, which hints that inflation will remain at a high rate in the future. He also points out that we must consider how the U.S. money supply has risen over 30%.
The Covid-era gave rise to certain central bank monetary policies that allowed for a lot of liquidity to linger. This is another reason why he believes that a lot of money will eventually go back to stocks.
While Mobius wasn’t particularly slamming cryptocurrencies, he wished to reiterate that stocks will continue to rule for a long time to come. The global investor also has company in JP Morgan Chase CEO Jamie Dimon, who has previously criticized crypto by calling it “worthless” and “fool’s gold”.