- Steve Eisman, an investor who profited from the 2008 subprime mortgage collapse, has expressed skepticism about cryptocurrencies despite their growing popularity.
- In an interview with Bloomberg Television, Eisman identified artificial intelligence, infrastructure, and crypto as the three major themes driving today’s narrative.
- Despite understanding the first two themes, Eisman expressed disbelief in crypto, contradicting its thesis of being a hedge against inflation and fiat currencies.
Investor Steve Eisman, known for his profitable prediction of the 2008 subprime mortgage collapse, expresses skepticism about the value and role of cryptocurrencies in the current financial landscape.
Eisman’s Stance on Cryptocurrencies
Steve Eisman, a prominent figure in the financial world, recently shared his views on cryptocurrencies in an interview with Bloomberg Television. Despite acknowledging the growing influence of crypto in today’s financial narrative, Eisman expressed skepticism about its value and role. He questioned the thesis of digital assets being a hedge against inflation and fiat currencies, pointing out their correlation with risk assets and the Nasdaq.
Crypto’s Contradictory Behavior
Eisman further elaborated on his skepticism, stating, “Let’s ask the people who own crypto. Why do they own it? They all say the same thing. They say… It’s a hedge against the demise of fiat currency. Cats and dogs will one day lie together, you’ll be in a cave but at least you’ll have your crypto. It’s like digital gold, that’s the thesis. Okay, let’s take them at their word. So if that’s the thesis, then on days where everybody’s worried about inflation, they’re worried about the deficit, the Nasdaq is down 300 points and interest rates are up, crypto should be up. And on days where everybody’s feeling great, NVDIA’s up, and Nasdaq is up and rates are down and nobody cares about inflation, crypto should be down. And does it act that way? It does not. It acts exactly the opposite of its own thesis. Its correlation to Nasdaq is like 75%. So to me, it’s just another way for people to speculate on speculating. There’s no data point of research that says it is right says that it is wrong.”
Conclusion
In conclusion, while cryptocurrencies continue to gain traction and influence in the financial world, skepticism remains among some industry experts. As Eisman’s comments illustrate, the behavior and value of cryptocurrencies can be seen as contradictory and speculative. As the crypto narrative continues to unfold, investors and observers alike will be watching closely to see how these digital assets evolve and impact the broader financial landscape.
