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Vanguard's Chief Economist Sees Decent Chance Bitcoin 'Goes To Zero'

Published 05/24/2018, 11:40 AM

Investing.com - You can add Vanguard Group to the chorus of Wall Street cryptocurrency critics.
Vanguard's global chief economist Joe Davis says there's a "decent probability" bitcoin "goes to zero."
In an op-ed column for ETF.com, Davis offers a number of reasons why the cryptocurrency has little, if any, value.
For one, Davis says bitcoin fails to qualify as a traditional investment because it does not generate cash flow, such as interest payments or dividends, as stocks and bonds do.
What's more, bitcoin does not meet the criteria of a currency because its volatility undermines its adoption as a store of value.
And, ironically enough, Davis says bitcoin is not a fundamental threat to central banks because they are capable of launching digital currencies of their own in the future.

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