Short seller: Bitcoin will fail in crisis

05 Jun, 2018
by Jelmer van der Dussen
News
Short seller: Bitcoin will fail in crisis

Short seller Jim Chanos expects Bitcoin to fail in a crisis. Bitcoin would be vulnerable for a crisis because it's not backed by government, as is the case with fiat currencies such as the US dollar.

"For those who believe that you need to own digital currency as a store of value in the worst-case scenario, that’s exactly the case in which a digital currency will work the least", Chanos, who succesfully shorted Enron Corp. in the past, said to Bloomberg. "The last thing I’d want to own is Bitcoin if the grid goes down."

Chanos has succesfully shorted energy giant Enron in the early '00s, and thinks the boom of the cryptocurrency market is nearing its end. "We’re now nine years into this bull market, same as the ’90s, so I suspect that now things are starting to percolate. This is simply a security speculation game masquerading as a technological breakthrough in monetary policy", Chanos said.

Chanos is also actively shorting Tesla, the electic vehicle maker from Elon Musk, stating the Tesla share is worth zero. "There have been all kinds of announcements that this company has made … that turned out not to be true", Chanos said on Tesla.

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Read more about: Bitcoin (BTC)

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