Bitcoin ‘Has No Purpose’, Says Steve Eisman the Wallstreet Veteran

Bitcoin ‘Has No Purpose’, Says Steve Eisman the Wallstreet Veteran

The Wall Street stalwart, who has gained fame and recognition after being portrayed by the movie and book “The Big Short” has expressed a somewhat negative sentiment towards cryptocurrencies. Mr. Eisman has predicted the financial crisis that hit the financial sector a decade ago and went on to successfully make millions during that period by shorting subprime mortgages.

Speaking to an audience of about 1500 at the CFA Institute’s annual conference in Hong Kong, the current managing director of Neuberger Berman has hit out at digital currencies and the crypto sphere in general. According to him, “I don’t see the purpose of it. What value does cryptocurrency actually add? No one’s been able to answer that question for me.“

Mr. Eisman is famous for being one of the very few investors that have been able to generate huge profits by betting against subprime mortgage securities during the financial crisis. In the case of US housing crisis of 2008, he has been following the signs for a couple of years, which led them to make the famous “big short”.

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However, when it comes to virtual currencies, Mr. Eisman admits he does not understand the underlying mechanics of the crypto market, as he claimed that, “I don’t touch it. I don’t know what I’m looking at…I have no interest.“ The fund manager then went on to add that he avoids investing in all currencies, not just the virtual ones.

Another deterrent for Mr. Eisman seems to be regulation or rather lack of it, as he said to be baffled why regulators do not control the market more heavily. Such a statement also shows that Eisman is not completely up-to-date with crypto regulation news, as biggest crypto-related countries such as Japan or South Korea have recently imposed fresh rules for ICOs and exchanges and new sanctions for those who fail to obey them.

Mr. Eisman has found fame within the financial sphere after correctly predicting the financial crisis of 2008. A couple of years later he rose to further stardom as his career was the focal point of Michael Lewis’ bestseller “The Big Short”. The book was turned into the movie of the same title in 2015, with Steve Carell portraying Mr. Eisman.

Mr. Eisman joins a group of other famous investors that have recently taken a swipe at cryptocurrencies. Curiously, the fiercest crypto critics are usually names, associated with traditional financial institutions, including such financial moguls as Warren Buffet, Charlie Munger or Jamie Dimon.

Image Source: “Flickr”

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I have been following the crypto markets since mid 2017, just in time to witness the incredible surge of the digital asset industry. Fascinated by the potential of blockchain technology I’ve started to dig deeper and that’s how I ended up meeting the Toshi Times team. I hold a Political Science degree, therefore the crypto regulation development is particularly interesting for me. I’m also heavily involved with music, running my own label, a YouTube channel and working with distribution. People call blockchain the ‘Fourth Industrial Revolution’ and I believe it will change our daily lives in the coming years and we will have the front row seats to witness it.