CNBC Counter Indicator: Wealth Manager Predicts Bitcoin (BTC) Crash
CNBC has long been controversial in the financial news industry. As the leading financial TV media outlet, CNBC often relies on experts who leverage short-term price action to try and predict long-term movements.
The phenomenon, which leads to vomiting camel patterns and other shenanigans, has only been amplified by the cryptocurrency market. To highlight the issue, the predictions made by experts and analysts on CNBC were around 95% accurate as a counter-trade signal for Bitcoin (BTC) last year.
Those who still stand by this system might be interested in the latest piece by CNBC, which cites Peter Mallouk, a certified financial planner and president of wealth management firm Creative Planning.
“What we’re going to see, most likely, is, we’re going to see cryptocurrencies collapse,” Mallouk told CNBC, adding that he believes there could ultimately be one or two cryptocurrencies that survive long-term.
Mallouk’s credibility on the subject quickly broke down from there, as he’s apparently never heard of the proof-of-stake (PoS) consensus model or any number of interest-bearing options that exist for cryptocurrencies.
“[If you buy cryptocurrencies], you get no income. It’s not a real investment. It’s speculation,” said Mallouk. “[Instead], own real estate, where you’re collecting rent. Own stocks, where you’re collecting dividends. Own bonds, where you’re collecting yield.”
Amusingly, interest in passive yield in the crypto space is becoming so pervasive that industry leader Coinbase just announced the addition of institution-focused cold storage staking for Tezos (XTZ), with plans to add other PoS altcoins in the future. Add to that the fact that at least $4 billion in investor capital is currently locked in PoS cryptocurrencies, according to a recent report by Diar, and Mallouk looks sadly misinformed.
The CNBC article goes on to cite both Jim Cramer, who notably recommended people HODL their bank stocks in 2008, and J.P. Morgan Chase (JPM) CEO Jamie Dimon, hand-picking quotes related to Bitcoin being a scam and a pure gamble. However, it’s important to note that JPMorgan has created its own stablecoin on Ethereum (ETH), devaluing much of the anti-crypto nonsense that the company’s CEO previously put forth.
More: Don’t buy bitcoin, warns wealth manager: We’re likely ‘going to see cryptocurrencies collapse’
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.