Nearly Half of Investors Are Bearish About Bitcoin
BY Will Yakowicz
A Bloomberg poll finds that 47 percent of respondents would sell Bitcoin, while only 11 percent would buy it.
A poll released Wednesday says many investors are bearish when it comes to Bitcoin, the digital crypto-currency.
In the Bloomberg Global Poll, 47 percent of respondents say they would sell Bitcoin. Selzer & Co., a Des Moines, Iowa-based public-opinion research firm, conducted the poll of 477 investors, traders, and analysts who also subscribe to Bloomberg's financial services.
Only 11 percent of the investors polled say they would buy Bitcoin, while 7 percent say they'd keep the digital currency and 35 percent say they do not have an opinion on it either way.
Nicholas Colas, chief market strategist at New York-based global brokerage company ConvergEx Group, says the poll results do not sway his outlook on Bitcoin. "Most good investors recognize the need to be contrarians. When everyone loves something, you consider selling it," he tells Inc. in an e-mail. "And when they hate it, you scoop it up with both hands. I would put the results of [Bloomberg's] findings in that context."
Bitcoin's volatility is a big reason the respondents are skeptical, Bloomberg reported. Now more than $800, the digital currency's price plummeted to less than $500 in late December after hitting a high of more than $1,000 in November.
A big hurdle for the crypto-currency is whether or not it can become mainstream. A big win for Bitcoin came in early December, when Bank of America released a positive report about it--the first Wall Street bank to support it. The bank did include a caveat, however. "Unlike fiat money, nobody is under any obligation to accept Bitcoins as a means of payment," the report said. "Therefore, its value is only as good as the perception of its worth by its users."
What do you think? When it comes to Bitcoin, are you a bull or a bear? Let us know in the comments below.
WILL YAKOWICZ is a reporter at Inc. magazine. He has covered business, crime, and politics at Patch.com, and his work has been published in Tablet Magazine and The Brooklyn Paper. He lives in Brooklyn, New York. @WillYakowicz