fbpx
QQQ
+ 0.40
341.21
+ 0.12%
DIA
+ 1.41
339.04
+ 0.41%
SPY
+ 1.40
414.50
+ 0.34%
TLT
-1.09
141.44
-0.78%
GLD
+ 1.00
164.35
+ 0.6%

Barclays Investment Chief Compares Bitcoin To 'Flightless Bird'

February 22, 2021 6:10 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Barclays Investment Chief Compares Bitcoin To 'Flightless Bird'

What Happened: Bitcoin (BTC) price corrected sharply from $57,000 to just under $50,000 earlier today, before recovering to $54,178 at the time of writing.

Over the course of its rally, the market-leading cryptocurrency has come under scrutiny from those skeptical of its success – most recently from Barclays (NYSE:BCS) investment chief Will Hobbs.

Hobbs, who is the Chief Investment Officer at Barclays’ Wealth and Investments, went on to compare Bitcoin to a “flightless bird.”

Why It Matters: Most analysts have suggested a key driver of Bitcoin’s successful rally has been the popular “store of value” narrative that surrounds the asset.

Many investors, including Tesla Inc's (NASDAQ:TSLA) Elon Musk, have cited Bitcoin’s inflation hedging properties during periods of excessive money printing as its most appealing quality.

Hobbs suggests that a change in government policies might lead to the cryptocurrency losing some value.

"My hunch is that if real interest rates turned positive, then bitcoin [will] suddenly look like quite a flightless bird. Because if I can get a positive yield from lending to the US or UK government, why am I going to own bitcoin?" he said to Business Insider.

What Else: Hobbs also stated that Barclays is not interested in Bitcoin at the moment, calling the zeal Bitcoin inspires ‘cultish.’

According to him, Bitcoin’s price movement is an example of the “narrative power of markets…similar to the Reddit story”, he said, referring to the GameStop Corp. (NYSE:GME) incident.

Image: Matt Brown via Wikipedia


Related Articles

Traders Of Crypto Report: 70% Of The Decade's Largest Financial Hacks Involve Stolen Bitcoin

The past decade’s most significant financial hacks have been a crypto heist of some kind. read more

Crypto Broker Voyager Digital's AUM Crosses $2.4B After Record-Setting Month

Voyager Digital Ltd (CNSX: VYGR), a crypto-asset trading platform for retail and institutional investors, has witnessed a record-setting month. read more

Opinion: The Doge Days Are Over. You Invested in Dogecoin, Now What?

This column does not necessarily reflect the opinion of the editorial board of Benzinga. Everybody familiar with traditional investing knows that penny stocks are rife with fraud and scams. read more

Could Ripple's (XRP) Latest Legal Win Be 'Game Over' For The SEC Lawsuit?

Ripple, the company linked to the XRP (XRP) token, has secured yet another goal in its legal match with the U.S. Securities and Exchange Commission by getting a right to see how the regular determines which cryptocurrency is a security, CoinDesk reported Tuesday. read more