Market influencers are found all over the world, and Dennis Gartman does not shy away from making his voice be heard. In one of his latest statements, he tried to understand what was going on in the Bitcoin world, yet failed miserably.
Financial experts always seem at odds with one another, as everyone has their opinion on how markets are evolving. CNBC’s Dennis Gartman always has an opinion ready, and he attacked Bill Ackman in a recent outing. But that is far from the most interesting part, as he also tried to show his knowledge on the Bitcoin topic.
Gartman ‘Never Shall Truly Understand’ Bitcoin
Unfortunately, that turned out to be a far from stellar success, as Gartman still has some studying to do. The recent Bitcoin price action has piqued the interest of this financial pundit, and he decided to try and explain where this rise is coming from.
He started off by saying:
Regarding Bitcoin […] which we rarely write about and which we truly do not and likely never shall truly understand […] it has had a recent massive bullish run, predicated upon immense Chinese buying. We are quite certain that much of this buying in the past might have made its way into gold, but has been diverted in Bitcoin for a number of reasons not the least of which is the secrecy involved in transacting trades in it.
It is always strange to see financial experts touch upon the Bitcoin subject, yet Gartman is honest in saying he will never truly understand it. The differences between centralized economic models and the free market nature of Bitcoin do not compute in the minds of those involved in traditional finance. Moreover, it is rather difficult to predict the Bitcoin market, as there is no “control.”
That being said, Gartman also touches upon the fact as to how there is secrecy involved in Bitcoin transactions. It is certainly true no personal information is recorded when making a Bitcoin transfer. But at the same time, there is still a lot of confusion regarding Bitcoin anonymity, even though cryptocurrency is clearly pseudonymous.
Here Come the Millennials
To make matters even worse, Gartman went on to call Bitcoin “the Millennial’s answer to gold.” This seems like a very odd reference, considering how there is no clear sign Millennials don’t care about gold. It is not certain they care about Bitcoin either, though there’s evidence they don’t really care much for stocks. Then again, financial experts often relate Bitcoin to gold and vice versa, due to both being scarce and the associated hype when discovering this new store of value.
Gartner also addressed the recent Bitcoin price action, saying:
Bitcoin traded very poorly [on June 7, 2016] peaking early in the day on a spike higher and then closing sharply lower and at or very near to the day’s lows. This is ominous then for holders of Bitcoin, but it may at the same time be supportive of gold in return. Time only shall tell.
Bitcoin has seen a lot of volatility as of late, and June 7 was no different. Yet the “sharply lower closing” Gartman refers to has to be put into perspective. When all was said and done, the price briefly dipped by $15 USD, after more than doubling in value compared to the same date last year. Its price has also increased by over $150 in the past 3 months alone, making it the best performing currency so far in 2016.
This just goes to show that despite admitting their lack of knowledge on a certain topic, some financial pundits will nevertheless seize the opportunity to give their own opinion and promote their own agenda.
What are your thoughts on these statements? Let us know in the comments below!
Images courtesy of Shutterstock, Dennis Gartman, cnbc.com