Lee Cooperman admits that he still doesn’t understand Bitcoin, even though the price of Bitcoin has risen more than 300% since December 2017.
CNBC interviewed the billionaire investor on Thursday. He said that people his age have difficulty understanding Bitcoin.
“I would be very cautious with Bitcoin. I don’t believe it makes much sense. If you are worried about the world, gold to me would be an easier place to store value.”
Cooperman’s Thursday statements are consistent with his previous comments on Bitcoin. Cooperman was confused about Bitcoin back in December 2017, when it was experiencing a bullish price rise.
Cooperman said in a Bloomberg surveillance interview that Cooperman had previously stated, in 2021: “On NFTs and bitcoin, stuff like this – I’m just too old.” It’s insane to me. I don’t get it. I’m a meat-and-potatoes guy, a stocks guy.”
The Omega Advisors chairman seemed to doubt whether Bitcoin could be a global currency, stating that it was not in America’s best interest to promote an alternative to U.S. dollars.
Related: September 7th is “Bitcoin Day” in El Salvador, as BTC becomes legal tender
El Salvador became the first country to accept Bitcoin as legal currency on Sept. 7. Market commentators suggest that other Central American countries may be encouraged to follow El Salvador’s example if it yields substantial economic benefits.
Cooperman’s argument for gold being a better store value than Bitcoin is an absurd one. It also ignores their respective performance over the past decade.
Bitcoin’s 10 year returns have been negative, with over 300,000% of its returns. At the time of writing, gold’s 10-year price performance is negative 3%.
Cointelegraph reported that Mike McGlone, a Bloomberg Intelligence analyst, has stated that Bitcoin will replace gold.