Veteran investor Mark Mobius, who has earned a reputation in the financial sector as part of leading investment management firm Franklin Templeton, recently said in an interview with Bloomberg that Bitcoin and other cryptocurrencies are likely to remain “alive and well” in the coming future. He attributed this to the fact that people are looking for trading alternatives, which allow transfers with fewer hurdles, more confidentiality, and in less time. It is this sentiment among investors, which will underpin the resilience of cryptocurrencies, according to him. Mobius, however, is not sure if he would invest in cryptocurrencies himself.
Mark Mobius, after retiring from Franklin Templeton, has established a new asset management firm, Mobius Capital Partners.
Fear Over Volatility Looms Large
On 23 April, Bitcoin price went past the $5000 mark and reached as high as $5650, the highest rate since December 2018. However, the price dropped by 10% to $5000 on 27 April. Most likely, this was a response to the lawsuit against Bitfinex. However, such instances reveal the extremely volatile nature of the asset. Moreover, it is this kind of volatility, according to Mark Mobius that has kept him out of this sector.
Mobius, who was the Co-Chairman of the Investor Responsibility Task Force of World Bank’s Corporate Governance Forum in 1999, has maintained a balanced stance towards cryptos. While he was critical of the Chinese hostility against crypto exchanges and Initial Coin Offerings (ICOs) in the country, he also had a word of caution for the investors regarding the volatility of this asset class, which has been witnessed through different instances. In regard to the changing nature of the global economy, as well as that of the crypto sector, it is essential to note that such voices of constructive criticism are essential and necessary for the overall improvement of the industry.