Evercore Chairman: ‘Bitcoin Is No Different From Beanie Babies’

On Wednesday (14 December 2022), Ralph Schlosstein, who is Chairman Emeritus at global independent investment banking advisory firm Evercore Inc., share his thoughts on crypto.

His comments were made during an interview with Guy Johnson and Alix Steel on Bloomberg Television’s “Bloomberg Markets”.

Schlosstein said:

“I think in the world of crypto, you really have to separate two themes there. One is classic cryptocurrency, the most famous of which obviously is Bitcoin. To me, you’re taking on two things there. Number one, which i do actually strongly believe is a positive, which isthe implementation of blockchain technology, which will make the transfer of money faster, more transparent, and more secure.

“So stable coins, I think, are going to be a really important element of the global economy, 5, 10, 15, 20 years from now. Crypto — I feel differently about… Think about it. If you put your money in a bank and put a dollar in a bank, you expect to take a dollar out of a bank. If you put your money, a dollar in a money fund, you expect to take a dollar out. If you put a dollar in a stablecoin, you expect to be able to take a dollar out.

“If you put a dollar in Bitcoin when it was $60,000 a coin, now you’re going to get less than a third of that. That’s speculation, not movement of currency, not paying for goods and services. To me, Bitcoin is no different from Beanie Babies. The more people want to own it, it goes up. The more people don’t want to own it, it goes down.

“The part that really importantly needs regulation Is the whole stablecoin market because clients… are being told ‘if you put a dollar in here, we’re going to hold assets so that you can take your dollar out’. We had regulation of banks so that could happen during the financial crisis. We put in much more intense regulation of money funds so that could happen. The same needs to happen with stablecoins.“

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