Mark Mobius, the founding partner at Mobius Capital Partners, joined Squawk Box anchor Joe Kernen at CNBC Television to discuss the state of the global economy and emerging markets. He said that Blockchain, the technology associated with cryptocurrency, is very risky and could result in huge crises for users.
Answering to a question about cryptocurrency and Blockchain, he said:
“The bottom line is that there is the whole generation of people who have faith in the internet also have faith in these cryptocurrencies. That’s all it takes and the reason people believe in US dollar because they have faith in Us dollar but with dollars, in their hand, they can buy something. If cryptocurrency can enable you to buy something and you believe that to be the case then it is fine. ”
He predicted that people will soon begin to realize that it is very risky to deal with crypto and blockchain.
Cryptocurrency has a fair share of its critics but most of them tend to speak favorably about blockchain. They talked about the invincible power of Blockchain but Mark Mobius does not think so as he stated:
“A lot of people say blockchain can’t be broken into. No, it can be. Anything that has been created by man can be broken into, and it could create a big crisis. So I think we have to be very careful about blockchain.”
Mark Mobius has never seemed to be a supporter of decentralized crypto assets but in May 2019, he said that Bitcoin and other cryptocurrencies will be alive and well in future. But in August 2019, he flipped his sides again by calling cryptocurrency psycho currencies.
It seems that Mark Mobius does not find anything attractive in the actual technical and market fundamentals of cryptocurrencies like Bitcoin. He believes that cryptocurrencies like Bitcoin only serve to push the prices high for real assets like gold and it has no intrinsic value unless it is backed by gold as many opposing experts and investors of cryptocurrency say.
Blockchain was invented by a mysterious name Satoshi Nakamoto in 2008. The blockchain is maintained by a network of experts called miners, who solve complex problems to complete transactions. It is a growing list of records called blocks that are linked together using cryptography. These blocks are recorded on many computers so that any involved record cannot be altered.
