Investor Steve Eisman Asks The Bitcoin Function As Currency

Bitcoin as currency. (Photo; Doc. Unsplash)

JAKARTA - One of America's leading investors, Steve Eisman, a Neuberger manager, recently criticized Bitcoin as currency. This was conveyed by Eisman in the Odd Lots Bloomberg podcast.

The figure who is the subject of Michael Lewis' book The Big Short, questioned the benefits of Bitcoin which is predicted to be the currency of the future. Eisman pointed out that the notion that Bitcoin is currency is often created by Bitcoin experts without in-depth discussion of the real reason.

He also stated that the idea that Bitcoin would act as a hedge against the decline in the value of other currencies was incorrect, because Bitcoin actually performed poorly as the government tightened monetary policy to combat inflation. Eisman asked, "So what are Bitcoin for currency?"

"The second part of the story about how Bitcoin should work, they all have the same opinion, namely that the fiat currency issued by the government has been greatly humiliated because of all the deficits that have been issued by all countries, but if you sell dollars, it is difficult to sell them. Therefore, you must buy Bitcoin as a hedge against the weakening of all currencies," he said.

In discussing the potential of Bitcoin as a hedging against the decline in the value of other currencies. However, he stated that the idea was very problematic. According to Eisman, Bitcoin does the opposite and has no value as a hedging. He also pointed out that large price changes in Bitcoin often make it unreliable as a currency.

Eisman concluded that he does not understand the purpose of owning Bitcoin other than as a speculative investment. His comments reflect a broader debate among financial experts over the potential and usefulness of cryptocurrencies. Although there are still many who question this, the popularity and use of Bitcoin continues to increase and is a concern for many people.