Conflicted Views on Bitcoin
Lee Cooperman, a billionaire investor known for his colorful commentary, recently opened up about his continued perplexity regarding Bitcoin. Despite its meteoric rise of over 300% since December 2017, Cooperman admitted on CNBC that he still doesn’t quite grasp what the digital currency is all about.
A Generational Gap in Understanding
During his interview, Cooperman likened his confusion about Bitcoin to a larger trend seen among his peers. “I’d be very careful with Bitcoin; I don’t think it makes a great deal of sense,” he remarked, adding that for those feeling uneasy about current global dynamics, gold remains a more practical option for storing value.
Revisiting Past Doubts
This isn’t Cooperman’s first rodeo with Bitcoin. His skepticism stretches back to bullish moments in late 2017 when he expressed similar bewilderment about the cryptocurrency’s explosive growth. Fast forward to early 2021, and he reiterated those sentiments, saying, “On NFTs, bitcoin, stuff like that — I’m too old. I don’t understand that stuff. It’s crazy to me.” Clearly, Cooperman aligns himself more with traditional assets, dubbing himself a “meat-and-potatoes guy.”
The Currency Debate
Cooperman’s apprehensions don’t stop at Bitcoin’s fundamentals. He has raised questions about the digital currency’s potential to serve as a global alternative to the U.S. dollar, asserting it’s not in America’s interest to endorse anything that threatens its financial dominance.
El Salvador: A Bold New Chapter
The landscape around Bitcoin took a significant turn when El Salvador became the first country to adopt Bitcoin as legal tender on September 7. This bold move has sparked discussions about whether it can serve as a model for other Central American nations, potentially creating economic incentives if successful.
A Look at Performance: Bitcoin vs. Gold
While Cooperman ardently defends gold as a reliable store of value, a quick peek at their performance reveals a glaring disparity. Over the last decade, Bitcoin enjoyed phenomenal returns of over 300,000%, while gold, conversely, has seen its 10-year performance dip to a negative 3%. It begs the question: is the modern-day gold rush really in the shiny metal, or has it shifted to a digital realm?
Insights from Analysts
Interestingly, insights from analysts like Mike McGlone of Bloomberg Intelligence indicate that Bitcoin might be on a trajectory to replace gold entirely. Perhaps Cooperman, amidst his skepticism, may need to reconsider where he plants his financial faith.
