Stay Away from Bitcoin, It's an ‘Absolute Bubble’ Says Tocqueville's Hathaway

New York (Sept 20)  Tocqueville’s Chairman John Hathaway doesn’t mince words when it comes to to talking bitcoin. When asked about the cryptocurrency craze, Hathaway, manager of the $1.2 billion dollar Tocqueville gold fund, simply said, ‘garbage.’ “It's an absolute bubble -there's no question in my mind that it's in a bubble,” he said on the sidelines of the precious metals summit in Beaver Creek, Colorado. Since the start of the year, bitcoin has rallied over 300% and is currently trading over $3,800. “Sure you can make money in bubbles any time but you have to get out. Let's not forget that the total market value of these cryptocurrencies is $180 billion or so, maybe a little less now -that's tiny compared to gold.”

In a recent talk, Allianz’ chief economic adviser, Mohamed El-Erian said that the recent interest in the cryptocurrencies is taking away from a gold rally. Other experts have echoed the same concerns. Hathaway thinks otherwise. “The idea that cryptocurrencies have somehow diverted interest in gold is baloney, it's just not true.”

KitcoNews