Bitcoin continues to face criticisms from every corner. Recently the former President of the U.S. called Bitcoin a scam and a currency based on thin air. Richard Bernstein – the CEO of Richard Bernstein Advisors has come out to say that Bitcoin is a bubble and that investors should be gearing towards oil.
Richard Bernstein made the statement that Bitcoin was a bubble while on CNBC’s “Trading Nation” on Monday. “It’s pretty wild. Bitcoin has been in a bear market, and everybody loves the asset. And, oil has been in a bull market, and it’s basically, you never heard anything about it. People don’t care”, he said.
According to him, Bitcoin, which he called a bubble, is pushing investors away from the biggest gains particularly oil. He described the situation as a crypto fever and intimated that that fever would come to an end eventually.
According to the CEO who has spent decades on Wall Street, oil is the most ignored bull market. “We’ve got this major bull market going on in commodities, and all people are saying is that it doesn’t matter”, he said.
WTI crude oil is trading around its highest levels since October 2018, according to CNBC. It settled at $70.88 on Monday and is up 96 percent over the past year. Bitcoin, on the other hand, may be up 13 percent over the past week but is still down 35 percent over the last two months.
Richard Bernstein said that even though Bitcoin had an astronomical rise over the past year, the levels at which it continues to rise will be unsustainable, and believes that the sudden fever to own Bitcoin has become a dangerous pandemic. “Bubbles differ from speculation in that bubbles pervade society. They go outside the financial markets. Certainly with cryptocurrencies now, you’re starting to see that happen where people are talking about them at cocktail parties”, he explained.
Bitcoin continues to soar irrespective of the huge criticisms it is faced with. El Salvador recently adopted Bitcoin as a legal tender – good and services as well as tax contributions can be valued and paid in Bitcoin.