The former CEO of Morgan Stanley, James Gorman, recently shared his perspective on Bitcoin (CRYPTO: BTC), the banking sector and the economic landscape.
What Happened: After a 14-year stint as Morgan Stanley’s CEO, which ended on New Year’s Day, Gorman, in an interview with Bloomberg, revealed his confusion about Bitcoin’s value as a storage medium.
He stated, “It should play for wealthy people a very small role in their financial fabric because it’s so speculative, it’s so volatile,” reported Business Insider.
“I’ve never really understood the value of bitcoin as a form of stored value.”
“I joked once, I wish I bought it at $60 and I’m glad I didn’t buy it at $60,000.”
Despite Bitcoin’s significant price swings and recent regulatory concerns, Gorman maintained that Bitcoin is not a fad. However, he does not see it as a fundamental investment but as a speculative asset.
“Listen, bitcoin’s not going away, it’s not a fad,” Gorman said.
“I just don’t think it’s a core investment. I think it’s a speculative asset of which there are plenty of choices.”
Addressing last spring’s failures of Silicon Valley Bank, Signature Bank, and Silvergate Capital, Gorman attributed the failures to poor managerial decisions and dismissed the notion of an industry-wide crisis as exaggerated.
Gorman presented an optimistic view of the U.S. economy, highlighting the swift decrease in inflation, steady output growth, and record-low unemployment. He predicted, “It’s unlikely we’ll have a recession, very unlikely we’ll have a hard landing.”
Why It Matters: Gorman’s comments on Bitcoin echo his earlier remarks during anearnings callin October 2021, where he also expressed his belief that crypto is not a fad. He acknowledged that while he was unsure of Bitcoin’s value, he saw the underlying blockchain technology as “very real and powerful.”
Meanwhile, Bitcoin rebounded over the $44,000 level on Thursday after the cryptocurrency valuations plummeted a day earlier. The global cryptocurrency market cap rose nearly 1% to $1.66 trillion.
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