Bitcoin (BTC) has won over several mainstream financial gurus in 2020 against the backdrop of a tough year for the U.S. economy. However, some market experts, such as Dennis Gartman, remain skeptical of the digital asset.
Gold and Bitcoin are not really equivalent, according to Gartman’s Tuesday interview with Bloomberg. “Gold has been around for thousands of years, Bitcoin has been around for 20 years,” he said. Gartman put out a financial commentary series for 30 years, called The Gartman Letter.
Bitcoin hasn’t been around for 20 years though. The asset’s nickname creator Satoshi Nakamoto published the written framework for Bitcoin in 2008, and the asset was officially launched on the web in 2009.
“Bitcoin is the gold of the millennials. I understand that, I get that, ”Gartman said. “I will never understand Bitcoin as far as being able to buy it at $ 10,000, $ 15,000, $ 20,000 – I’ll leave that to people who are smarter, wiser or more brave than I am.”
As many have projected before him, Gartman believes the price of Bitcoin will eventually fail. “I fear that in the near future the monetary authorities, the various central banks around the world, are going to refuse to give up their monopoly on monetary policy and will walk in one a day and Bitcoin has been given zero, ”he said, adding:
“But can it go to $ 100,000 before that? John Maynard Keynes once said that the market can remain illogical for longer than you or I can remain solvent, and at the moment it seems to me completely illogical. ”
However, Gartman showed no hard feelings against Bitcoin market participants, explaining simply that he prefers gold over the digital coin. He also mentioned Bitcoin’s limited supply and the arguments over the expected rise of the asset as a result. “Now, there are, 7,000 different cryptocurrencies out there,” he added, noting:
“There is an infinite amount of finite amounts of currency, so I think the fun, the joy, the enthusiasm for Bitcoin and the cryptos will eventually go the way of all flesh.”
On the other side of Gartman’s sentiment, 2020 has maintained a growing trend of traditional financial players allocating capital to Bitcoin.