David Tice, a financial counselor and former manager of the Prudent Bear Fund has warned against investing in bitcoin. He claimed that it is “very dangerous to hold” bitcoin today, citing “negative statements” by central bankers and regulators such as the Bank of England.
David Tice, a financial advisor, issues a cautionary statement. Investing in Bitcoin Can Be Risky
In an interview with CNBC on Friday, David Tice, who sold his bear fund as the 2008 financial crisis unfolded, discussed the stock market and bitcoin. Tice, a former manager of the Prudent Bear Fund, is notorious for taking bearish bets during bull markets. He presently serves as an advisor to the Advisorshares Ranger Equity Bear exchange-traded fund (ETF), a market capitalization of $70 million under management.
Tice was a bitcoin bull at the start of the year, but he became negative after the cryptocurrency’s price hit all-time highs in March. He’s now warning crypto investors that BTC is extremely risky to own right now.
The tick does not believe Bitcoin is the only market that is risky to invest in. He also feels that investing in the stock market is extremely risky. “In terms of future earnings, the market is costly. We’re racking up debt as we’ve never seen before. The Treasury market is behaving strangely, with rates dropping dramatically,” he explained.
The Bank of England has been outspoken about its stance on bitcoin. Andrew Bailey, the governor of the Bank of England, claimed in May that cryptocurrencies were risky and had no inherent value. However, he advised investors to invest in cryptocurrencies if they expect to lose all of their money. Christine Lagarde, the president of the European Central Bank (ECB), agreed with him.
Cryptocurrencies, according to Bailey, will not last. In addition, he stated in June that “elements of tough love would be present” in crypto regulation.
Last Monday, Deputy Governor Jon Cunliffe of the Bank of England stated that cryptocurrencies are not large enough to represent a threat to financial stability.