Hedge fund manager Paul Singer is "shocked" by Bitcoin's rise, especially given gold's fall.
"There is no more reason to believe that bitcoin will stand the test of time than that governments will protect the value of government-created money, although bitcoin is newer and we always look at babies with hope," Singer wrote in a letter to investors of his $23.3 billion Elliott Management on Jan. 27.
"If you want an alternative currency, check out gold. It has stood the test of thousands of years as a store of value and medium of exchange," Singer added.
"Better yet, it is not just a computer entry in the ether somewhere, and it is currently available at a good price. Bitcoin and its relatives represent an understandable impulse (anti-big-government, pro-freedom, pro-modernity), but we do not see how it actually survives. At least with gold you have to work really hard to dig the stuff up."