As Bitcoin invades traditional investments, the market leaders of that space continue to pick sides, with commodities whiz Dennis Gartman staying away. Gartman is still confused by the technological currency and thus is not biting.
Gartman has admitted that he appreciates Blockchain technology, and says that Bitcoin is fast money, but he will not be touching it.
A punter’s dream
Gartman has said that the fluctuations in Bitcoin – something that is driving its progression as the hottest new investment – is something that bothers him.
“It is a punter’s dream,” Gartman told CNBC. “I give them credit for that, but it is something that I will absolutely stay away from, have stayed away from it, didn’t understand it to begin with, don’t understand it now.”
Gartman has said he appreciates Bitcoin’s introduction of Blockchain technology. However, the cryptocurrency’s price fluctuates too much to convince him to invest.
“What bothers me is that something that can move 5, 10, 15, 18 percent in the course of the day for what’s supposed to be a pricing mechanism,” Gartman said. “How can you buy a house? How can you buy a car? How can you buy Starbucks with Bitcoin when the price is going to fluctuate as dramatically as it has?”
No longer the alphas
There has been a lot of noise coming from traditional asset investors, who, because of this new and unprecedented technology, are no longer the experts.
It seems that this predicament is scaring some of them, as Gartman is joined by billionaire investor, co-chairman of Oaktree Capital Group, Howard Marks in saying he does not understand Bitcoin.
There are even cases of companies, like VanEck, who have shunned Bitcoin, but in the same breath filed for exchange-traded fund to invest in Bitcoin derivatives.
Not what it makes out to be
Gartman’s understanding of Bitcoin seems to be purely based on its ability as a currency, stating that it was intended to be better than the dollar and the euro, but has now become an infinite currency.
“We’ll walk in one day and this will all have ended,” he said ominoulsy. “And it will end very badly.”