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Mark Mobius: Crypto Is A Religion, Not An Investment

Mark Mobius, a famous fund manager and global investor, is no fan of cryptocurrencies. He recently told Squawk Box that the emerging asset class is more of a “religion” than an “investment.” Mocking Bitcoin loyalists, he said that stocks, rather than cryptocurrencies, are the ultimate solution to rising inflation.

Mobius Disapproves Of Crypto

The fund manager showed his distaste for cryptocurrencies in an interview with Squawk Box earlier today. While discussing the debasement of fiat money, the interviewer asked about the potential in cryptocurrencies as an aside. Bitcoin was created to fix fiat money and inflationary policy by remaining hard-capped at 21 million units.

He agreed that the devaluation of currencies “is not going to go away” given that the money supply has risen by 30%. However, Mobius remained skeptical of such novel technologies regarding Bitcoin and reaffirmed that stocks are still “definitely the answer.”

“The Bitcoin and cryptocurrency situation is a religion. It’s not an investment. People believe in it, people believe they’re getting richer, and that’s fine… but once the music stops, then we’re gonna be in real trouble.”

Mark Mobius names his top metals commodity investments
Mark Mobius. Source: CNBC

The music has certainly not stopped playing. Bitcoin and Ethereum both reached new all-time highs last month, and the prior holds steadily above $60k. El Salvador is even using its Bitcoin profits from recent months to invest in a pet hospital and 20 new schools.

Nevertheless, Mobius concluded that people “should not look at cryptocurrencies as a means to invest.” He said the space is only for speculation and “having fun”, and that ultimately, investors must return to stocks.

What Do Other Investors Think?

Mobius’s opinion is not uncommon, but it isn’t popular either. Instead, there seems to be a healthy mix of skepticism and enthusiasm about Bitcoin among America’s wealthiest.

Warren Buffet, for example, is another non-believer. The ultra-wealthy investor has adamantly declared that he would “never own Bitcoin.” He calls it “rat poison squared” and “contrary to the interests of civilization.”

Conversely, there are more bullish billionaires as well. Paul Tudor Jones believes Bitcoin is a better choice for resisting inflation than gold. Tesla CEO Elon Musk – now the richest man alive – bought $1.5 billion worth of Bitcoin in February. They’ve held most of it since – even following an over 50% market crash.

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The most bullish of all is Michael Saylor, CEO of MicroStrategy, who owns over $1 billion in Bitcoin. Saylor is known for praising Bitcoin with religious awe, and considers it the world’s “apex asset.”

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