The founder and chairman of Equity Group Investments, Sam Zell, says he is skeptical of bitcoin but acknowledges that it may be part of the solution. Specifically, the billionaire and real estate magnate believe the bitcoin (BTC) community is made of many individuals he is not fond of the coin.
Fast Talking Characters
In statements made during an interview, the billionaire, who foretells that the U.S. dollar will lose its standing as the world’s reserve currency within the decade, has no kind words for some anonymous individuals’ bitcoin space. A report quotes Zell remarking:
“I am very skeptical, frankly, of bitcoin. Ultimately, it may be the answer or one of the solutions. But right now, it’s a world that’s extraordinarily populated by chameleons and other fast-talking characters. I don’t believe everybody involved in it are the kind of people I’d like to follow.”
Although the billionaire did not describe how BTC can be one of the answers, the same interview, though, does give some hints as to why Zell thinks so. When discussing the possibility of the U.S. dollar losing its reserve status, Zell warns:
“If we keep doing what we are doing right now, I think it is 10 or 15 years away. If we lose the reserve status, I could see a 25% reduction in our standard of living.”
U.S. Dollar Reserve Currency Status
Meantime, other individuals and organizations, as well as the International Monetary Fund (IMF), appear to share the billionaire’s thoughts on the U.S. dollar’s future status. The IMF says central banks now need to think about the possibility of replacing the dollar with other alternatives, which involve digital currencies.
Nevertheless, Zell hints at the disastrous results ahead if the tradition of “unlimited debt and irresponsible activity” does not end. Numerous analysts, including bitcoiners, see the excessive borrowing and printing of money as the prime cause of the U.S. dollar’s depreciation. The resulting diminished dollar value then demands some investors to seek and invest in inflation resistant assets like fiat money. Bitcoin is proving to be one such asset.
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