Man Group CEO: Bitcoin is like a tulip bubble
Man Group CEO: Bitcoin is like a tulip bubble Man Group CEO: Bitcoin is like a tulip bubble

Man Group CEO Luke Ellis told the Financial Times that cryptocurrencies are worthless but offer their holders incredible opportunities in terms of trading.

Cryptocurrencies like tulips?

According to the interview shared by the Financial Times, Ellis does not believe the intrinsic value of digital currencies. To him, the entire cryptocurrency market looks like the infamous tulip euphoria of the 17th century.

Ellis said that the vast majority of investors involved in the cryptocurrency markets fully understand that the digital coins of the cryptocurrency king are worthless in terms of “ultimate” utility.

Both Ellis and his team acknowledge that cryptocurrencies provide investors with lucrative trading opportunities that arise from the “wild” price swings of digital assets.

Speaking of trading…

Man Group trades cryptocurrencies, among other things. Well known for its revolutionary research in the context of quantitative models for studying price anomalies, Man Group seems to be missing no opportunity to cash in on crypto price fluctuations.

Cryptocurrencies don’t look to Luke Ellis like a full-fledged investment product that provides any value to investors. He is interested in blockchain as a technology that can make payment systems more efficient. However, this does not affect the value of blockchain assets: for the CEO of Man Group, they are purely as trading instruments.

Bitcoin versus tulips

The tulip bubble was a short but intense speculative bubble in what is now the Netherlands that lasted only a few months from late 1636 to February 1637.

Although it affected only a small part of the economy, at the height of the bubble, a single pound of tulip bulbs cost 1500 guilders. This was, roughly, the equivalent of four years’ salary for a skilled carpenter. The implosion, which was of unknown origin, caused a 90% drop in price.

Opponents of bitcoin quite often compare the rise in the cryptocurrency with the tulip bubble, arguing that the “intrinsic value” of these two assets is practically non-existent and the market is ruled solely by speculation.

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From the Editor

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