By Mac Slavo
Allianz Global Investors, the investment arm of Europe’s biggest insurer, employees economists who say Bitcoin is absolutely worthless, and a bubble that’s about to burst. Allianz Global, which manages almost 500 billion euro, says Bitcoin “ticks off all the boxes” for a major asset bubble.
“In our view, its intrinsic value must be zero,” Stefan Hofrichter, the company’s head of global economics and strategy, wrote in a recent web post. “A bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream.” Gold doesn’t generate an income stream either but has been a viable currency for over 2,000 years.
But according to Bloomberg, the investors at Allianz Global have more to say about Bitcoin. Additionally, they added that the world’s largest cryptocurrency “ticks all of the boxes” of the essential criteria for any asset bubble, including overtrading, “new-era” thinking and rising leverage, he wrote. Bitcoin mania is a textbook-like bubble, “one that is probably just about to burst.”
Hofrichter is far from the only person to make comments regarding Bitcoin’s value. Even Peter Schiff says the cryptocurrency is heading toward its “real worth” of $0. University of Pittsburgh researchers have concluded it’s “an asset which has no value by traditional measures” and economist Nouriel Roubini called it the “biggest bubble in human history.”