Speaking to Fox Business, Belski said that without clarity on bitcoin’s intrinsic value, the crypto should not be part of an investment portfolio because it is neither a currency nor an asset. He further said that bitcoin’s supply and demand situation explains why it cannot be an investment tool since it is in a momentum-based market. Belski acknowledged that bitcoin has gained momentum since 2019, and once the demand dries up, it will be hard to establish the digital asset’s intrinsic value. He added that bitcoin’s popularity had removed pressure from the stock market, with most people concerned by the asset’s price movement.
‘Bitcoin has no existential threats’
Belski’s view strongly differs from Michael Saylor, the CEO of MicroStrategy, a pioneer bitcoin institutional investor. According to Saylor, bitcoin is a strong store of value and will not face any threats in the near future. Saylor believes that even if authorities ban the asset’s use as a currency the investment tool status will stay. According to Saylor. Besides MicroStrategy, electric vehicle manufacturer Tesla also invested $1.5 billion in bitcoin. Visa (NYSE: V) and PayPal (NASDAQ: PYPL) have also emerged as key players in the crypto sector. By press time, bitcoin was trading at $56,288, a drop of 2.62% in the last 24 hours according to data provided by CoinMarketCap. Watch the video: BMO Capital Markets chief investment strategist Brian Belski on market bubbles, gold and bitcoin
