Michaela Alvez
Vanguard, one of the largest investment firms globally, has maintained its stance against Bitcoin and the broader cryptocurrency market, dismissing the merits of these digital assets as speculative and lacking tangible value.
Despite increasing interest from various companies in Bitcoin and the like, Vanguard reaffirmed its skepticism regarding Bitcoin’s long-term value. The investment giant recently said that Bitcoin “has no role in long-term investment portfolios,” citing concerns over its speculative nature.
According to AFR, Duncan Burns, the Principal and CIO of Vanguard Asia-Pacific, stated that the investment community has yet to establish Bitcoin’s superiority within the market. He described the digital asset sector as “weak.”
“While many speculators have made money on cryptocurrencies, there are as many if not more who have made a loss. And I suspect a lot more will lose money in the future,” Burns said.
Burns has reiterated concerns over Bitcoin’s value proposition, stating that the cryptocurrency lacks cash flow and cannot be objectively valued. He said that the speculative nature of Bitcoin’s price is a major drawback, as it is not tethered to any economic fundamentals.
Vanguard, one of the largest ETF providers in the world, has consistently maintained its opposition to cryptocurrency. Despite the approval of Bitcoin and other crypto ETFs by the U.S. Securities and Exchange Commission (SEC), the firm has declared it has no intention of offering these products to its clients.
Michael Saylor Reacts to Vanguard Stance
Co-founder and former MicroStrategy CEO Michael Saylor is not shy in saying that Bitcoin has a powerful store of value and is a good hedge against inflation.
Under his leadership, MicroStrategy made Bitcoin a core part of its corporate strategy. The company has significantly increased its Bitcoin holdings, now totaling 423,650 BTC, which are currently valued at approximately $42 billion.
Saylor took to X to voice his criticism of Vanguard’s stance. He disagreed with the firm’s dismissal of the cryptocurrency’s role in investment portfolios.
Saylor has repeatedly emphasized that Bitcoin’s scarcity and decentralization make it a superior asset to traditional currencies, especially in uncertain economic times.
While some companies have been cautious or skeptical of incorporating Bitcoin into their financial strategies, MicroStrategy’s commitment has influenced other businesses to consider the potential benefits of holding this asset.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
