Bitcoin BTC/USD has fallen more than 30% since the start of the year, but one bear is anticipating even further downside.
What To Know: Short Hills Capital’s Steve Weiss is bullish on the underlying technology supporting Bitcoin, but he doesn’t understand the use case for the world’s oldest cryptocurrency.
“Bitcoin is an asset class. That’s undeniable, but it’s a risk asset class and I just don’t see the utility in it,” Weiss said Monday on CNBC’s “Fast Money Halftime Report.”
Many view Bitcoin as a transactional currency, but Weiss claims it isn’t, and it never will be.
“It’s not a currency. It’s years and years [away], as a matter of fact it’s [for]ever away from being a currency because of the volatility,” he said. He also noted that sovereign nations will never use it as a currency because of such.
After meeting with several Bitcoin investors, he told CNBC that Bitcoin is supposed to be a “store of value,” but he still doesn’t understand what that means.
“Nobody can really explain it to me,” Weiss said. “What is it exactly?”
Despite his bearish sentiment, he is bullish on blockchain technology, he said: “Which I do believe has a lot of utility, and we haven’t even seen what it can do.”
How To Trade It: Weiss told CNBC he is shorting Bitcoin via the Grayscale Bitcoin Trust GBTC.
“It’s not going out of business, but I think it continues to go lower as risk comes off, and I’d rather be short that than be short a stock, so that’s why I’m short Bitcoin,” he said.
$BTC Price Action: Bitcoin is down about 20% over the last month and more than 16% in just the last week.
Bitcoin was down 6.30% over a 24-hour period at $31,778.75 at press time.
Photo: mohamed_hassan from Pixabay.