Bitcoin is a hot topic at the moment after breaking a record of $10,000. This year it has had an incredible growth. Vangurad Group founder Jack Bogle now warns investors to keep their fund away from the Bitcoin industry.
Himself a legendary investor, Bogle founded Vanguard Group Inc at 88 years of age and is now the retired chairman of the group. He gave the opinion on Tuesday at an event of Council on Foreign Relations in New York, responding to audience who sought his opinion on the Bitcoin having surged above $10000.
“Avoid bitcoin like the plague. Did I make myself clear?”
He said ‘Bitcoin has no underlying rate of return’ on stocks with dividends as well as earnings.
“You know bonds have an interest coupon, stocks have earnings and dividends, gold has nothing. There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”
He is not the only person to have had negative comments against Bitcoin. JPMorgan Chase CEO Jamie Dimon named bitcoin a “fraud” and “worst than tulip bulbs” but later receded. Howards Marks, a billionaire investor previously called Bitcoin a “pyramid scheme.”
Particularly, some think that the rise of Bitcoin will be affecting by ban by governments.