Morgan Stanley CEO Believes Bitcoin is Just a Speculative Asset

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James P. Gorman, Morgan Stanley Chief Executive Officer, believes that Bitcoin does not deserve any attention. In this way, the CEO becomes part of the group of bankers that are against Bitcoin and cryptocurrencies.

Morgan Stanley One More Bank Against Bitcoin. Who’s Next?

Bitcoin has called the attention since its price passed from $960 at the beginning of the year to $7900 dollars. Different companies and investors are starting to look at Bitcoin in a different way after showing an interesting resilience.

But some bankers like Jamie Dimon, CEO of JP Morgan Chase, does not trust this virtual currency. For them, Bitcoin is just a speculative asset that will not succeed. James Gorman is now part of this group. He has said that Bitcoin “does not quite deserve the attention it is getting.”

In his opinion, Bitcoin is a bubble. The attention that Bitcoin is gaining can only harm investors and individuals that think that it has any kind of value. Something similar to what Dimon said in the past. “Bitcoin is a bubble and it will eventually blow up.”

James Gorman

Other Big Investors Have Better Opinion About Bitcoin

Lloyd Blankfein, CEO of Goldman Sachs has an optimistic view about this cryptocurrency. For him, this virtual currency can be different from other currencies in the past. “I read a lot of history, and I know that once upon a time, a coin was worth $5 if it had $5 worth of gold in it. Now we have paper that is just backed by fiat… Maybe in the new world, something gets backed by consensus,” he said.

For Mt. Gorman, Bitcoin can’t be trusted as a currency to store value or spend day by day. “Something that goes up 700 percent in a year, it is by definition speculative. So anybody who things that they are buying something that it is a stable investment is deluding themselves. The currency could go up another 700 percent but it could easily not,” Gorman said.

More Investments Arriving at the Cryptocurrency Network

Reuters has reported that Man Group, one of the biggest hedge funds, wants to get involved with Bitcoin. The intention of this UK-based company is to start to trade Bitcoin. This fund manages an incredible amount of money: $103.5 Billion dollars. If just 4% of the funds are invested in Bitcoin, it will surpass the 4 billion dollars’ mark. In the last 24 hours Bitcoin has managed a trading volume of 4,5 billion dollars.

The biggest futures market in Argentina, ROFEX, is also going to work with Bitcoin. In this way, big money is going to arrive at the markets, not only to Bitcoin. “Blockchain is a trending term. This famous global chain, famous for being the backbone of Bitcoin, will start to be used by our training team,” Rofex commented.

The Chicago Board Exchange has also said that it is exploring Bitcoin derivatives opportunities.

Image courtesy of Business Insider