Cryptocurrencies have been the talk of the markets, with Bitcoin leading the pack of digital currencies to all-time highs. However, one analyst closely monitoring the market says he’ll wait on the sidelines for now.
“You have to say they’re in a bubble…I will not buy bitcoin or any digital currencies currently for fundamental reasons,” Vince Lanci, MarketSlant.com contributor and founder of Echobay Partners, told Kitco News Thursday in an interview with Daniella Cambone.
Lanci said he expects Bitcoin and alternative coins – or altcoins – like Ethereum and Ripple to remain volatile.
"You're buying something that has more volatility, if not more, than the Nasdaq,” he said. “So you should be careful of bubbles, it doesn’t mean the product is bad, it’s just a little ahead of itself.”
Bitcoin is dominating the other digital currencies, surpassing the price of gold and hitting an all-time high of $2,791.69 per coin last week. However, other cryptocurrencies are now gaining traction, posting quadruple gains like runner-up Ether – the digital currency backing the ethereum blockchain.
Lanci said he buys into the technology behind the cryptocurrencies but doesn’t see them replacing gold anytime soon. [edit- blockchain- SKG]
“I’m not saying they’re not a buy as an investment,” he said. “But anybody who’s drawing a parallel between any cryptocurrency and gold as a safe haven doesn’t know what they’re talking about it.”
Lanci is alluding to the belief by some investors that cryptocurrencies are taking over gold’s safe-haven status. Like gold, cryptocurrencies provide economic freedom and allows individuals to transact across borders without government interference.
“That’s the real parallel,” he explained.
But, despite the similarities, the longtime trader says he wouldn’t see Bitcoin or anything like it replacing gold anytime soon. Instead, Lanci’s message was clear:
“Anyone who is buying bitcoin as a replacement to gold as a safe haven is making a mistake.” [edit- as a safe haven or hedge from economic concerns- Skg]
