The editor and publisher of the Gartman Letter thinks Bitcoin is a bubble that's ready to burst.
Gold, a physical metal that has been used as a medium of exchange for thousands of years, shares at least one thing in common with Bitcoin, a virtual currency launched nearly four years ago: Both have a finite quantity. Well, theoretically, at least.
(Read: Would you buy bitcoins?)
The total amount of Bitcoins is supposed to max out at 21 million in the next century. The limited supply and its basic structure may have attracted the likes of Peter Thiel and the Winklevoss brothers, but not Dennis Gartman. And, comparison between Bitcoin and gold is one that really perplexes him.
"It's one of the silliest ideas I've ever heard," says Gartman. "Bitcoin is not gold."
Gartman also doesn't entirely buy into the promise that Bitcoin supplies will be limited.
"That's a strange promise to begin with," says Gartman. "I wonder what's to stop anyone else from creating their own correlative Bitcoin. So, to compare it to gold I think is a preposterous notion. But, nonetheless, the younger among us who are more facile in the use of the computer seem to feel comfortable with it and have created a wonderful bubble."
To hear the rest of Dennis Gartman's thoughts on Bitcoin and why he thinks it's a bubble waiting to burst, watch the video above.
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