In jargon so stilted against cryptocurrency – Bitcoin in particular – that it could have been scripted by comedy duo Buffet & Munger, one-time investment advisor Jim Chanos said that BTC is the “last thing” he’d want to own in a full-blown crisis.
Jim Chanos became the latest relic from the past to try and give himself some relevancy to today’s world by attempting to dish the dirt on cryptocurrency – Bitcoin in particular. While nowhere near as rich or famous as the likes of Bill Gates, Warren Buffet or even Charlie Munger, Chanos became just the latest business veteran to publicly lash out at a product that he knows nothing about.
Who Is Jim Chanos
60-year old American former investment advisor Chanos made his reputation as a noted “short seller”. Short selling is the art of selling something you don’t actually own – preferably for a profit. Chanos proved very good at it, and has amassed a personal fortune estimated to be in the region of $1.5 billion. Chanos was also one of many who predicted the demise of Enron, following a major scandal in 2004.
What Did Chanos Say?
In an interview he gave with the Institute for New Economic Thinking which has been published this week, Chanos said that cryptocurrency is:
“This is simply a security speculation game masquerading as a technological breakthrough in monetary policy.”
Bitcoin has often been referred to as “digital gold,” in fact earlier this week Apple co-founder Steve Wozniak said just that in an interview with CNBC. Wozniak said that he “totally buys into” that reference and stated that Bitcoin truly was “pure digital gold.”
Chanos attempted to counter the “digital gold” reference by stating the obvious and saying that in an “apocalypse” food would actually function better as a currency:
“In the worst-case scenario, that’s exactly the case in which a digital currency will work the least. The last thing I’d want to own is bitcoin if the grid goes down.”
C’mon Jim, if the grid were to go down, it would probably be the result of an apocalyptic end-of-days level conflict. In that scenario, the man with the gasmask and the AK-47 rules, not the man with a bank full of currency, crypto or otherwise!
Getting back to Bitcoin, and Chanos was even dismissive of those people who see it as a viable currency, or as a profitable investment option. He said:
“Bitcoin is still the area for people who are trying to avoid taxation or other examinations of their transactions. That’s one thing where I think it probably still has utility, but the governments have figured that out.”