Bitcoin's restricted provide doesn't matter to a market commentator
Bitcoin (BTC) won a number of mainstream financial gurus in 2020 amid a difficult year for the US economy. However, some market experts such as Dennis Gartman are still skeptical about the digital asset.
Gold and Bitcoin are not really equivalent, according to Gartman's interview with Bloomberg on Tuesday. "Gold has been around for thousands of years and bitcoin has been around 20 years," he said. Gartman published a financial commentary series called The Gartman Letter for 30 years.
Bitcoin has not existed for 20 years. The pseudonymous creator of the asset, Satoshi Nakamoto, published the written framework for Bitcoin in 2008 and the asset was officially released on the internet in 2009.
"Bitcoin is millennials gold, I understand, I understand," Gartman said. "I'll never understand Bitcoin if I can buy it for $ 10,000, $ 15,000, $ 20,000 – I'll leave that to people who are smarter, smarter, or braver than me."
As many have projected before him, Gartman believes that the price of Bitcoin will stall at some point. "I fear that in the not too distant future the monetary authorities, the various central banks around the world, will refuse to give up their monetary monopoly and in a day will go and Bitcoin will be rendered zero," he said, adding:
“But can it go to $ 100,000 by then? John Maynard Keynes once said that the market can be illogical longer than you or I can remain liquid, and right now it seems totally illogical to me. "
However, Gartman did not show any harsh feelings towards Bitcoin market participants, merely stating that he preferred gold over digital coin. He also mentioned Bitcoin's limited supply and the case for the asset's expected price increase. "Now there is something, 7,000 different cryptocurrencies out there," he added, noting:
"There are an infinite number of finite currencies, so I think that the fun, the joy, the enthusiasm for Bitcoin and the cryptos will eventually take the path of all flesh."
On the other side of Gartman's mood, 2020 has seen a growing trend of traditional financial players allocating capital to Bitcoin.