- Bernstein suggested oil as a better stock investment
- WTI crude oil’s stocks settled at more than $70 on Monday
- Musk recently hinted at the possibility of accepting Bitcoin payments again
All-star investor Richard Bernstein on Monday warned investors over Bitcoin, which he called a “bubble,” and suggested a better stock investment with the biggest gains.
Bernstein, an Institutional Investor Hall of Famer, appeared on CNBC’s “Trading Nation” where he suggested that Bitcoin and other cryptocurrencies are unsustainable and warned that rushing to own these digital currencies could become parabolic.
“Bubbles differ from speculation in that bubbles pervade society. They go outside the financial markets,” he said, adding: “Certainly with cryptocurrencies now, and most likely with most technology stocks, you’re starting to see that happen where people are talking about them at cocktail parties.”
Bernstein later suggested that it is better to invest stocks in oil, which he called an “ignored bull market.”
“Bitcoin has been in a bear market, and everybody loves the asset. And, oil has been in a bull market, and it’s basically, you never hear anything about it. People don’t care,” he said.
On Monday, WTI crude oil’s stocks settled at $70.88. The trading is the highest level the company has recorded since October 2018, which rose by 96% since 2020.
Over the past week, Bitcoin has gone up by 13%. However, it is still down 35% over the past two months.
Bitcoin is predicted to reach a value of $250,000 by the end of 2022 or in the early months of 2023, according to billionaire venture capitalist and Bitcoin investor Tim Draper. He first made the prediction in 2018 when the cryptocurrency was trading at $8,100.
The price of Bitcoin surged Sunday after Elon Musk, the CEO of American electric vehicle company Tesla, hinted that they could begin accepting the cryptocurrency again should it begin mining using clean energy.
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” he tweeted.
On Monday, Bitcoin prices jumped by 12.5% from Sunday’s value, reaching $39,400, according to data from Coinbase. It started at $29,400 in January and hit $64,899 in April.
Only a few major companies are currently accepting Bitcoin payments, including Microsoft, PayPal, Whole Foods, Starbucks and Home Depot.
Bitcoin has been boosted by a tweet from Elon Musk that Tesla will accept the cryptocurrency when it is mined using cleaner energy Photo: AFP / Justin TALLIS