Lee Cooperman, president and CEO of Omega Advisors, says people should be wary of Bitcoin and recommends gold as a better store of value. By his own admission, the old wolf still doesn’t understand Bitcoin (BTC), despite it increasing more than 300% since the beginning of December 2017. For details of the news cryptocoin.com keep reading.
Bitcoin doesn’t make much sense, according to billionaire Lee Cooperman
Speaking to CNBC on Thursday, billionaire investor Lee Cooperman implied that his peers had a hard time understanding Bitcoin, saying:
I would be very careful with Bitcoin. I don’t think that makes much sense, and if you’re worried about the world, gold would be a better place (for me) to store value.
Lee Cooperman’s comments on Thursday are in line with previous comments about Bitcoin. In December 2017, when BTC was in an uptrend, Lee Cooperman expressed his confusion about BTC. In early 2021, Cooperman said in an interview with Bloomberg:
I’m too old for NFTs, Bitcoin, stuff like that. I don’t understand these things. This is crazy for me. This makes no sense. I’m a meat and potato man, a stock man.
Is gold really a better store of value than Bitcoin?
The head of Omega Advisors apparently casts doubt on whether Bitcoin can become a global currency and states that it is not in the interest of the United States to offer an alternative to the US dollar. On September 7, El Salvador became the first country to officially adopt Bitcoin as its legal currency. Some market commentators say that other Central American countries, El Salvador, could follow suit if the move yields significant economic benefits.
According to crypto analyst Osato Avan Nomayo, Lee Cooperman’s argument that gold is a better store of value than Bitcoin has been blown away by its own performance over the past decade. Bitcoin has yielded more than 300,000% returns over the past decade, while gold’s 10-year returns have recently turned negative. As of the time of writing, the 10-year price performance of gold is at the negative 3% level.
Too old for BTC?
Bitcoin’s impressive price surge over the past few years and its $1 trillion asset earlier this year has undoubtedly caught the attention of many prominent investors beyond its scope. These investors, too, typically fall into two groups: those who see the value of BTC and allocate money to it, like Paul Tudor Jones III, and those who refuse and criticize it, like Warren Buffett. Lee Cooperman, a US billionaire investor and president and CEO of Omega Advisors, appears to be a member of the latter camp. A few years ago, he argued that while Bitcoin was climbing to its then $20,000 peak, it didn’t make sense to him.
While Lee Cooperman admits that his knowledge of cryptocurrency is not sufficient, he does not hesitate to warn the US government to be extremely cautious about cryptocurrencies. He also seems confident that authorities should not follow the example of El Salvador to adopt BTC as a legal currency. He believes it is not in the interest of the American government to see Bitcoin as a substitute for the US dollar. Lee Cooperman says he’s a “paper man” who believes in the US economy. But he advises those who are cautious about their economic future to turn to gold rather than Bitcoin, as the precious metal “will be a better place to store value.”
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