During an interview with BizNews Power Hour, hedge fund guru Jean Pierre Verster analyzed the latest market behavior and expressed that cryptocurrencies have no intrinsic value. In this way, Jean Pierre Verster suggests that he does not believe in cryptocurrencies.
During the interview, Verster said that he believes that blockchain is a wonderful technology. In fact, you think you can find applications when it comes to having open records and ledgers. Or, when it comes to secure transactions where people do not have the ability to alter the data after it has been posted.
“The application of blockchain in cryptocurrencies for me is where it gets a little carried away. I don’t think there is an intrinsic value to these cryptocurrencies. I can understand that if you have different countries with foreign exchange restrictions, hyperinflation and people who are told by governments that they are not allowed to move their money as they see fit, that that makes cryptocurrency very popular.
However, the founder of a South African hedge fund Protea Capital Management said that he does not believe there is “intrinsic value” in cryptocurrencies. And it considers that these digital assets have “elements of a Ponzi scheme” with them and for this reason it has not invested in them.
Verster is known for predicting the troubles of the African Bank and Steinhoff and short selling their shares. Founded in 2017, Protea Capital Management is a foreign investment firm. Company that manages award-winning hedge funds and long-only portfolios in developed domestic and global markets. And he managed to get a financial services provider license in 2019.
Verster No interest in speculative investments
While highlighting the limitations of forex platforms and hyperinflation as some of the legitimate factors driving the popularity of cryptocurrencies, Werster continues to attack the use of blockchain in cryptocurrencies.
The hedge fund guru doesn’t like speculative investments. Reason why crypto assets are not part of your Investment Strategy.
According to him, cryptocurrencies don’t produce anything, they have no intrinsic value, and you can’t get interest or dividends from cryptocurrencies like you can from stocks, for example.
Verster further explained that there could be a crash in securities, like a Ponzi scheme, when all interested people are involved in crypto:
“So you have these elements of a Ponzi scheme, which means that over a long period of time, prices go up, go up, and it seems like the value goes up and then everything collapses.”
Many other respected investors, including Berkshire Hathaway CEO and Chairman Warren Buffett, share Verster’s view that Bitcoin and altcoins have no underlying value.
Although he points to currency restrictions and hyperinflation as some of the legitimate factors that contribute to the popularity of cryptocurrencies. During his interview, Verster also warned of impending collapse if all the people who eventually wanted to trade currencies did so at some point.