Analyst: Bitcoin is a Soft Drug Leading to Cryptomania
December 21, 2017
The first Wall Street's analyst, who began surveying Bitcoin, would never have thought that the cryptocurrency would reach such volumes. Now he is trying to warn investors who go to the crypto world in pursuit of easy money
"It is already clear that commonplace enthusiasm around Bitcoin, which marked the beginning of the year, turned into general madness around the concept of "crypto" in general. I think that Bitcoin is a kind of soft drug, which leads to switching to more serious ones," says Nick Colas, who compared this mania with the Wild West.
The year 2017 is marked by an outburst of interest towards the cryptocurrency world, which has caused a multiple rise in the cost of not only Bitcoin, but also the majority of popular altcoins that have been renewing their historic highs over the past weeks.
According to Colas, investors who are trying to become part of the crypto world not through cryptocurrencies, but through shares associated with them, can seriously suffer and incur large losses.
"Most investors see many cryptocurrencies growing by 100% per week, and they start thinking that the shares connected with the crypto world can grow at the same rate, but that's not so. Shares are the fundamental principle of business in general, but crypto world suggests new paths. Therefore, they are different," says Colas.
The analyst also admitted his owning all the cryptocurrencies that can be purchased at the Coinbase exchange, and also said that he had managed to purchase them before the sharp increase in rates.
"It seems to me that there is no longer any space for moving up. I think that new money will still come, but there will be much more rotation, just like in the stock markets," Colas said.